Patel asks FM to rationalise taxes on ATF

New Delhi: Civil aviation Minister, Mr Praful Patel on Wednesday asked the finance minister to rationalise the tax structure in the aviation industry including levies on aviation turbine fuel in the Budget for 2008-09.
In a pre-Budget meeting with Finance Minister, Mr P Chidambaram here, Mr Patel also sought extension of tax rebate given to the newly merged Air India to help it in its consolidation process.
The Civil Aviation Minister also sought withdrawal of service tax on First Class and Business Class air tickets saying this was putting domestic airlines in a disadvantageous position vis-a-vis foreign airlines on whom this tax was not applicable.
Pointing out that civil aviation is a sunrise sector, he said it needs little bit of facilitation and support. Mr Patel quoted finance minister as saying that the Government will have to understand the problems faced by the civil aviation industry due t o the high prices of ATF.
16/01/08 Business Line

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Categories: Indian Aviation- In General Jan 2008