Kochi: The service tax on airfreight and two per cent education cess will adversely hit the air cargo export industry.

The Kerala committee of The Air Cargo Agents Association of India said the taxes would put exports in a disadvantageous position. The major cargo from the Thiruvananthapuram, Kochi and Kozhikode airports are perishables like vegetables and fish.

At present exporters of perishables are operating at a low margin unlike the exporters of other goods, the association treasurer, Shaji Varghese, said. Already, in addition to freight, the exporters have to contend with fuel surcharge, war surcharge and other indirect costs like e-raying. The indirect cost will come to 50 per cent of the freight charges. The export of perishables is the highest from Thiruvananthapuram airport with about 50 tonne a day. The exports through Kochi airport come to 15 tonnes daily while it is seven tonnes through Kozhikode airport. The Cochin International Airport has even signed an agreement with APEDA for setting up a centre for perishable cargo to promote agricultural and perishable product exports.

The association along with the agriculture product exporters association has represented the matter to the central government in the hope of getting some concessions.