Cut taxes for aviation sector growth, Centre tells states

New Delhi: The Centre on Friday asked state governments to review and rationalise their taxation policy on jet fuel and land acquisition practices to encourage the expansion of civil aviation sector so that they could themselves reap the benefits of its unprecedented growth.
"States must not look at aviation as a milching cow. There is cut-throat competition in this sector. Airlines are losing money, mainly because of competition and high taxes," Civil Aviation Minister Praful Patel said at the first-ever National Civil Aviation Conference, involving state governments, here.
He said if the taxes, particularly state sales tax, were rationalised, then it would encourage more airlines to fly into a state, leading to creation of aviation as well as tourism infrastructure that would in turn create jobs and income through a multiplier effect.
18/01/08 PTI/The Hindu

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Categories: Indian Aviation- In General Jan 2008