Aviation fuel not to be 'declared goods' now

New Delhi: The Centre has made it clear that it would not for the present proceed with the proposal of including aviation turbine fuel (ATF) in the list of declared goods.
The States had some months back urged Centre not to give “declared goods” status to ATF as it would affect their revenue collections.
“Regarding the inclusion of ATF in the list of declared goods, it has been decided by the Government of India not to proceed with the proposal for the present,” Pranab Mukherjee, Union Finance Minister, said in a written reply to a query in Rajya Sabha.
Mukherjee noted that the Centre had received a letter from the Empowered Committee of State Finance Ministers on VAT urging it not to grant declared goods status for ATF.
Granting of declared goods status to ATF would have restrained States from levying a sales tax rate higher than 4 per cent.
Currently, sales tax rate on ATF range between 4 and 30 per cent across various States.
On their part, the domestic airline Industry, which was faced with losses, had been since last year making a case for ATF to be granted a “declared goods” status as this would bring down their operating cost.
20/02/09 Business Line/Sify

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Categories: Indian Aviation- In General Feb 2009