Kingfisher Airlines seeks govt nod for importing ATF

New Delhi: Vijay Mallya-led Kingfisher Airlines has sought government's approval for importing the aviation turbine fuel to do away with tax expanses as high prices continue to wreck havoc with the financial health of airlines in the country.
Mallya has written a letter to Petroleum Minister Murli Deora seeking permission to buy jet fuel directly from the international oil majors.
Currently, the cost of ATF in the country is about 60 per cent higher than global prices because of imposition of taxes at various levels. Jet fuel is subject to five per cent import duty by the Centre as well as sales tax by states which range between four per cent and 35 per cent.
"The Indian aviation industry is recording significant losses largely due to the steep hike in oil prices and the very high level of taxation on ATF by the various state governments.... In this regard, we are actively exploring the possibility of directly importing ATF which will obviate the need to pay any sales tax," Mallya said in the letter.
24/09/08 PTI/The Hindu

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Categories: Kingfisher Sep 2008