Onus on Patel to plead for airlines

New Delhi: Airline operators today urged civil aviation minister Praful Patel to take up their case for cutting taxes on jet fuel and airport charges before the Union cabinet.
Patel is expected to make a presentation on the aviation sector’s losses and highlight the need to cut fuel taxes before the cabinet on Thursday.
Officials said they expected the civil aviation ministry to restart talks with airport bodies and airlines, and get the newly appointed Airports Economic Regulatory Authority of India to put a leash on airport charges.
At the same time, the ministry is likely to urge state governments to cut jet fuel taxes. The levy varies across states.
The officials said the government had long advocated a declared goods status for jet fuel, which could bring down the tax from as high as 29 per cent in some states to a uniform rate of 4 per cent.
Andhra Pradesh has the lowest tax on jet fuel at 4 per cent, while Bihar and Tamil Nadu have the highest at 29 per cent. West Bengal charges 25 per cent.
However, the Centre has not gone ahead and granted the declared good status because of opposition from the states who have not accepted the logic for reducing taxes.
10/08/09 The Telegraph

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Categories: Indian Aviation- In General Aug 2009