Friday, December 28, 2018

Why clean if it does not earn votes?

Travelling through 3 international airports at Bengaluru, Goa and Chennai in India Prof K Bajpai discovered that standards are extremely poor compared to airports in other countries. Toilets were dirty and there was no toilet paper at everyone of these airports. This despite paying some of the highest taxes in the world. Unless we reduce taxes on air travel the industry will not be able to grow, said Director General of International Air Transport Association, A de Juniac. Although, passenger numbers have been growing by double digits for 50 months, which should increase profits, all our airlines are reporting losses because of competition and taxes on fuel at 35-40%. Even Indigo, which caries the largest number of passengers, reported a loss of Rs 6.52 billion in the last quarter, compared to a profit of Rs 5.516 billion in the same quarter last year, even though it increased its revenue by 17% due to larger number of passengers. Passenger services have been brought under the Goods and Services Tax (GST) which has reduced the amount of tax from Rs 154 to Rs 137.5 on a ticket costing Rs 2,000. At a GST rate of 5% the tax should amount to Rs 100. Rs 137.5 means that the tax has been levied on Rs 2750, which means that we are paying GST on fuel charge which includes tax on fuel. If aviation fuel is also brought under GST airlines will save Rs 11 billion every year but states are reluctant because they will lose revenue. The government has made it mandatory for petrol pumps and service stations along highways to offer clean toilets for women and men separately. The larger establishments employ cleaners who clean WCs and swab the floor throughout the day. Why airports cannot do the same is a mystery, especially when they are earning huge amounts from charges. Around 27 million passengers used Bengaluru Airport this year, 19 million used Chennai and 7 million used Goa Airport. Is it because cleaners at airports become government employees and hence do not need to work? "Our airports are symptomatic of public facilities throughout the country -- shoddy, dirty, unfriendly an frequently unsafe -- that mock ordinary citizens," wrote an angry Bajpai. Only 2-3% of Indians fly so these are no ordinary citizens. Just as taxpayers are regularly accused of evading taxes and new laws are devised to snare them. According the the Finance Minister 37 million Indians filed income tax returns in 2015-16, out of which 20 million traveled abroad and 12.5 million new cars were sold in the same financial year. If both husband and wife are working it is possible to buy a new car with bank financing. 85% of sales of one Maruti dealer was financed by bank loans. Traveling abroad maybe cheaper because of lower taxes in other countries and farmers do not pay taxes even if very rich. Perhaps, the minister should see how many of his colleagues list themselves as farmers so as not to pay taxes. Swacch Bharat is great photo op for the masses. Who cares about airports?





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