IATA Calls For More Clarity And Stability In India's Complex Taxation Framework

New Delhi, June 3, 2025 — The International Air Transport Association (IATA) has called for more clarity and stability in India’s complex taxation framework, especially in light of recent tax notices issued to foreign airlines operating in the country.

India, one of the fastest-growing civil aviation markets globally, continues to attract strong airline investment as carriers expand fleets and routes to meet surging demand. However, IATA Director General Willie Walsh emphasized that regulatory unpredictability — particularly around taxation — could hinder future growth.

“The rate of growth in the Indian aviation market will be higher than China,” Walsh remarked, underlining India’s strategic importance to global carriers. “But there needs to be greater certainty in the taxation system.”

Walsh’s comments come amid heightened scrutiny of tax compliance by foreign carriers, with several facing fresh tax notices from Indian authorities. While IATA acknowledged the government’s efforts to support aviation infrastructure and connectivity, the group noted that legal ambiguity in tax regimes could dampen investment enthusiasm.

IATA, which represents over 350 airlines worldwide, reiterated its commitment to working with Indian regulators to address these issues constructively.

With India’s aviation sector poised for exponential expansion over the next decade, global stakeholders are closely watching policy stability as a key enabler of long-term growth.

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