Patel urges states to reduce sales tax on aviation fuel

New Delhi: As Maharashtra became the third state in the past month to reduce sales tax on jet fuel to four per cent, Civil Aviation Minister Praful Patel on Wednesday urged other states to consider similar measures.
"It is advisable for other states to look at similar measures ... states like Tamil Nadu, Karnataka, Delhi and West Bengal," he said after laying the foundation stone for the headquarters of Bureau of Civil Aviation Security (BCAS) here.
While Maharashtra reduced state sales tax on aviation turbine fuel (ATF) in its budget on Wednesday, Kerala and Andhra Pradesh are the other states to have cut the rate from a high 33 and 24 per cent respectively to four per cent.
The Maharashtra government slashed sales tax on ATF from 25 to four per cent, but the new rate will not apply to Mumbai and Pune, accounting for most flights operated in the state.
Patel said the move made economic sense as cheaper fuel would lead to cheaper tickets, thereby attracting more air travellers to these states.
19/03/08 PTI/Daily News & Analysis

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Categories: Indian Aviation- In General Mar 2008