Praful to talk ATF duties with FM

New Delhi: Civil aviation minister Praful Patel will meet finance minister P Chidambaram next week to discuss the various customs and excise duties applicable on different components of air travel. Patel, who has the soaring ATF prices on top of his agenda, is also expected to discuss a ‘declared goods’ status for the fuel so that a uniform 4% sales tax could be levied on it across the country. The ministers will also discuss the sales tax that passengers have to pay while travelling overseas. Interestingly, a passenger flying on an international carrier does not pay the 12% sales tax on his ticket, which he has to pay while traveling on an Indian carrier.
The minister had met petroleum minister Murli Deora to discuss the ATF prices late last month, but nothing came out of the meeting. “I will also seek to get the service tax abolished on first class and business class air travel in domestic carriers to make them competitive vis-à-vis international airlines,” Patel said on the sidelines of India Aviation 2008, an event being organised jointly by the ministry, Airports Authority of India, Pawan Hans and Air India from October 15 to 18.
11/01/08 Financial Express

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Categories: Indian Aviation- In General Jan 2008