Airlines for uniform tax on jet fuel

New Delhi: Civil Aviation Minister Praful Patel said on Wednesday his ministry has sought ‘declared good’ status for aviation turbine fuel (ATF) to prop up the crippled finances of domestic airlines.
Patel led a delegation of CEOs of different airlines, state-run and private, and sought Prime Minister Manmohan Singh's intervention to help bail out an industry in the red due to the unprecedented rise in jet fuel prices.
Several airlines have been forced to cut down the number of flights, and some are even finding it difficult to pay their employees.
The ‘declared good’ status would lead to a uniform tax of three per cent on ATF. Currently, states levy varying sales tax on the commodity. While Maharashtra, Gujarat and Madhya Pradesh levy sales tax of 30 per cent and more, other states levy lower taxes.
“The Centre has its own compulsion, and in a federal structure we cannot unilaterally decide to grant ‘declared good’ status to ATF. The states’ opinions have to be sought before we take a decision,” Patel told reporters after an hour-long meeting with Singh.
Patel said the issue of high sales tax on ATF would be taken up in the meeting of the Empowered Group of State Finance Ministers slated for next Monday.
12/07/08 HIndustan Times

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Categories: Indian Aviation- In General Jun 2008