<b>XI LOK SABHA DEBATES, <i> Session IV (Budget) </i> </b>

<b>XI LOK SABHA DEBATES, <i> Session IV (Budget) </i> </b>
XI LOK SABHA DEBATES, Session IV (Budget) Friday , May 16, 1997 / Vaisakha 26, 1919 (Saka)

Type of Debate: SPECIAL MENTION
Title: Demand to release a postal stamp for Shri V.S. Khandekar. TEXT : SHRI RAM NAIK (MUMBAI NORTH):

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SHRI PRITHVIRAJ D. CHAVAN : Mr. Chairman, Sir, I associate myself with the demand made by Shri Ram Naik on the issue of release of a postal stamp for Shri Khandekar.

Now, I want to raise another important issue regarding the huge default in respect of inland air travel tax owed by private airlines. As you know, all airlines, including private air operators, collect inland air travel tax at the rate of 15 per cent from all domestic passengers. This tax is required to be deposited with the Customs authorities within 30 days. However, the private air operators have not deposited this inland travel tax amounting to over Rs.45 crore even after repeated reminders. Half of these dues are owed by the air operators who are still active and the other half is owed by the airlines which are no longer active. They have, probably, wound up. One airline owes as much as Rs.13 crore. One Chennai based group which operates two airlines owes Rs.15 crore and even Vayudoot, a wholly Government owned airlines, owes Rs. three crore.

Sir, why is the Government silent on this issue? Why are the Customs authorities so lenient with these air operators? Why are these private air operators allowed to illegally use huge amount of public taxes? It is reported that the Customs authorities have now issued an ultimatum forcing the airlines to pay by this evening all the taxes worth Rs.45 crore which are required to be deposited.

I would ask the Government to please assure the House that no further extension will be granted and also that the interest will be collected on the delayed payment. I also want to know what action is going to be taken against those airlines which have stopped operating. Whether their properties will be attached or their aircraft would be impounded. I want a statement in this regard.