Govt seeks break-up of ATF

New Delhi: Amid demands by the aviation industry to rationalise the tax structure on jet fuel, the government today asked oil companies to provide a break-up of the pricing of aviation turbine fuel within 15 days to find ways to reduce the high rates the airlines have to pay.
This was conveyed to top oil firm executives at a meeting chaired by the civil aviation secretary, Mr Ashok Chawla.
Stating this, official sources said the meeting was convened to establish some clarity in ATF pricing. The oil firm officials were asked to provide the break-up of ATF pricing within 15 days, they said.
The annual fuel bill of the Indian aviation industry is estimated at almost $2 billion, based on the rates prevailing last September. ATF cost amounts to about 40 per cent of an airline’s total operating cost.
State governments have also been charging varied, but high, rates of State Sales Tax ~ even as high as 36 per cent.
11/07/07 The Statesman

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Categories: General Aviation Jul 2007