Patel briefs Manmohan on high rates of taxes

New Delhi: Concerned over the crisis in the aviation sector because of the skyrocketing prices of jet fuel, Civil Aviation Minister Praful Patel led a delegation of chiefs of several airlines on Wednesday to meet Prime Minister Manmohan Singh and apprise him of the hardships faced by the carriers.
The Prime Minister was given a presentation by Mr. Patel on the high rates of taxes, particularly sales tax imposed by States on Aviation Turbine Fuel (ATF).
Mr. Patel will make another presentation before the Empowered Committee of the Finance Ministry that deals with the sales tax and later meet Union Finance Minister P. Chidambaram.
Any decision on capping the sales tax rate at four per cent on ATF would have to be taken by State Finance Ministers. The airlines have hit a turbulent patch owing to the high cost of jet fuel which eat up about 40 to 50 per cent of the total cost of operations.
Patel was accompanied by Jet Airways chief Naresh Goyal, Kingfisher chief Vijay Mallya and chief executives of SpiceJet and GoAir as well.
12/06/08 The Hindu

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Categories: Indian Aviation- In General Jun 2008