Cut tax on aviation fuel: Hoda panel

New Delhi: A high-level committee set up by the Planning Commission on Wednesday recommended further reforms in the banking, insurance, Information Technology and shipping sectors, while pitching for a cut in taxes on aviation turbine fuel (ATF) to facilitate cheaper air travel.
In its report submitted to Prime Minister Manmohan Singh, the committee, headed by Commission member Anwarul Hoda, sought a benign tax regime for IT and shipping to encourage increased private sector participation in the services sector, which accounted for over 50 per cent of the country’s economy.
On ATF, the committee said the cost was on the rise on account of the global surge in crude prices. Therefore, “either the Centre should bring ATF within the ‘Declared Goods’ or the States should be persuaded to adopt the standard Value Added Tax rate of 12.5 per cent.”
At a press conference here, Mr. Hoda said the AFT price spiral “has been exacerbated by State governments levying tax at high rates.”
03/04/08 The Hindu

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Categories: Indian Aviation- In General Apr 2008