The IATA Agents Association of India (IAAI) has demanded that service tax be made applicable to all air tickets issued in the country.

The demand was raised by the association in a memorandum sent to the Prime Minister recently. The memorandum pointed out that service tax was at present imposed only on tickets issued by travel agents and not on tickets issued by airlines directly or those issued via e-ticketing. The association also demanded that an Airline Pricing and Taxation Regulatory Board should be formed.

It should also be made mandatory that airlines operating in India should declare and file their air fares, taxes, surcharges, commissions, discounts and incentives with the Government of India and enable the Director General of Civil Aviation (DGCA) to control the operations.