Fuel for large aircraft may be ‘deemed export’

New Delhi: The Government may provide ‘deemed export’ status to aviation turbine fuel (ATF) being sold to Boeing and Airbus aircraft being operated by domestic carriers, thereby ensuring that it attracts a uniform sales tax of 3 per cent throughout the country.
The implementation of the decision will provide the much-needed fiscal relief as the sales tax levied on ATF sold to such aircraft varies from 4 per cent to more than 30 per cent.
The high-level of taxes imposed on ATF, which accounts for between 45 per cent and 50 per cent of the operating cost of most domestic airline is one of the main reasons for the industry reporting losses of more than Rs 4,000 crore.
Speaking to newspersons after a meeting with the Finance Minister, Mr P. Chidambaram, the Minister for Civil Aviation, Mr Praful Patel, said that all issues including taxes on crude and State level taxes and other steps that could be taken to help the industry through the current crisis were discussed.
23/10/08 Business Line

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Categories: Indian Aviation- In General Oct 2008