Recipe for lower jet fuel rates

New Delhi: A committee appointed by the Planning Commission today asked the government to adopt a standard VAT rate of 12.5 per cent to bring down the cost of aviation turbine fuel (ATF).
The cost of aviation fuel has been rising because of spiralling crude oil prices. The problem has been intensified with state governments levying a higher sales tax.
“The Centre should either bring ATF within the definition of ‘declared goods’ or states should be persuaded to adopt a standard VAT rate of 12.5 per cent,” the group headed by commission member Anwarul Hoda said in its report .
According to the recommendations submitted to Prime Minister Manmohan Singh, sales tax on ATF is as high as 40 per cent in some cases, while petroleum products remain outside the purview of state VAT.
Higher taxes make Indian ATF prices dearer by 60 to 70 per cent compared with competing countries.
02/04/08 The Telegraph

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Categories: Indian Aviation- In General Apr 2008