Higher salaries and tax-free income from West Asian and southeastern airlines have for long snatched pilots away from Indian carriers. Now, a surcharge levied by the Indian government on high-income individuals is proving to be a burden. Airlines now hope that the upcoming budget 2018 will give them relief.
Finance minister Arun Jaitley, in the last budget, had proposed to increase the surcharge on income tax for individuals with a total income of over Rs 10 million from 12 per cent to 15 per cent. Commanders of Indian airlines normally fall under the Rs 10 million salary bracket and have to pay the surcharge. But in order to make their salary package attractive, airlines bear the expense of surcharge.
A senior government official said that in their budgetary demands, airlines have asked for abolishing the surcharge part or give exception to companies where this tax is borne by the employer.
“Indian carriers are grappling with the pilot shortage and to stop them from migrating abroad, they have opportunities across the world primarily from West Asian carriers where income is tax free, airlines have no choice but to bear the extra burden of surcharge in addition to the tax,” said an executive of a private airline.
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