Only states can decide on aviation fuel tax issue, says Patel

New Delhi: Civil Aviation Minister Praful Patel has categorically ruled out stepping in to bring down sales tax on aviation fuel as demanded by the aviation industry, and said that it was an issue under the state governments' purview.
"This issue comes under the purview of the state governments and there is not much the central government can do about it," Patel said in an interview to the broadcaster IBN7.
"If it were in the hands of the government, we would have already done it."
His comments came in reply to a question on the contentious issue of aviation fuel sales tax, which cash-strapped carriers say is too high and one of the reasons for them to warn recently that they would suspend operations.
Patel also declined to comment on when he thought the sales tax issue would be resolved.
"This is not in my hands. I called finance ministers of all the states to Delhi for a meeting and requested them. This is not in the hands of the government of India."
He also ruled out any financial aid for the beleagured industry. "No, we will not give a bailout package. Everyone comes out of the problem in its own way."
In explanation, Patel said his "ministry does not have money", and asked rhetorically: "Whose money will I give? From where will I get the money? Private companies will do businesses on their own. When they do business, they keep their earnings with them. They don't give it to the government. So, now when they are in crisis, from where will the government give money?"
He also denied giving a Rs.20,000-crore bailout package to the national carrier, but hinted the government would bring in fresh equity.
09/08/09 IANS/Economic Times

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Categories: Indian Aviation- In General Aug 2009