Airlines seek uniform tax on ATF

Mumbai: After having resorted to hike airfare, following a 14% rise in aviation turbine fuel (ATF), airlines have sought sops from the government to offset losses. Federation of Indian Airlines (FIA) has made a strong pitch for treating ATF as declared goods, in order to rationalise the fuels’ price. If done, ATF will attract a uniform 4% sales tax across the country. Currently, states impose levies ranging between 4% and 32% on ATF.
In its fresh plea to the petroleum minister Murli Deora, FIA has argued that airlines were running a severe risk of dampening passenger market growth in India, by fast making air-travel out of the reach for a significant portion of the market which was fuelling the sector’s growth.
Justifying airfare hike, FIA said the total additional cost burden of ATF hike would be around $270 million on an annualised basis for the whole industry.
01/12/07 Sanjay Jog/Financial Express

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Categories: General Aviation Dec 2007