Indian states not ready to comply and cut air fuel taxes

New Delhi: Ambiguity over who - the centre or the states - will take the call to cut air fuel taxes seems to have largely defeated the whole purpose of organising the first ever National Civil Aviation Conference in the capital.
While none of the state governments is willing to reduce taxes on air fuel, the central government too is not in favour of granting tax exemption by listing it as declared goods, under which the central sales tax would come down.
The states feel that if they agree on reducing the sales tax on air fuel to four percent - as demanded by union Civil Aviation Minister Praful Patel - they would lose badly on the revenue front.
According to Uttar Pradesh Chief Secretary P.K Mishra, if his state cuts air fuel tax from 20 percent to four percent, it would lose about Rs.7.50 billion every year.
Sanjay Ubale, secretary (aviation department) of Maharashtra, the home state of the civil aviation minister, told IANS that the central government can at any point of time do away with exorbitant air fuel taxes by giving it the status of declared goods.
20/01/08 Sanjay Singh/Khabrein.info

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Categories: Indian Aviation- In General Jan 2008