‘Tax hike is driving up operational costs, resulting in higher freight charges’

Satish Lakkaraju, CEO, NexGen Logistics, Garudavega shares, “The introduction of 18% GST on air freight is significantly impacting the trade, logistics, e-commerce sectors, and causing distress among cargo agents and courier companies. This tax hike is driving up operational costs, resulting in higher freight charges for both businesses and consumers. Additionally, C2C (customer-to-customer) customers are unable to claim GST credit, making it an additional, non-recoverable cost. Since ocean freight is taxed at 5%, we recommend reducing the GST on air freight to be 5% as well, ensuring parity and easing the financial burden across the industry.”