FinMin may ease taxes on jet fuel soon: Praful Patel

New Delhi: The finance ministry has no problems with rationalisation of taxes on aviation turbine fuel (ATF) to help the airline industry, Civil Aviation Minister Praful Patel said today.
“In two-three days, the finance ministry will take appropriate measures on the tax-side to help the airline industry,” he told reporters after meeting Finance Minister P Chidambaram.
“He (Chidambaram) certainly believes that there is a case for rationalisation of taxes, which may not have been the case in the past,” Patel added.
The finance minister, on his part, said that he has put a query to the petroleum ministry on taxes on ATF.
The meeting comes close on the heels of the benefits given by oil companies yesterday to airlines which have a total fuel bill of Rs 2,926 crore, around 72 per cent of which is defaulted.
According to the package, the dues will be cleared in six monthly instalments by March 2009. Current ATF purchases will get 90 days’ credit, supported by bank guarantees. Also, jet fuel price revisions will henceforth happen every fortnight.
24/10/08 Business Standard

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Categories: Indian Aviation- In General Oct 2008