Friday, January 29, 2010

Airport operators want more duty-free liquor,uniform ATF tax

Mumbai: The private airport operators have demanded more duty-free import of liquor and wines, besides classifying aviation turbine fuel as a 'declared good' to reduce tax burden on it.
In a pre-budget memorandum to the Finance Minister, the Association of Private Airports Operators (APAO) has also demanded specific income tax exemption on the security component of the passenger service fee.
"Duty-free import of liquor may be allowed up to three litres and additional two litres for wines," the memorandum said, adding this would not only promote tourism but also benefit the passengers, Airports Authority of India as well as private airport operators, APAO secretary-general Satyan Nayar has said in the memorandum.
The association has also demanded that jet fuel should be brought under the declared goods category so that the fuel will have a uniform 4 per cent tax across the country. Now this varies from state to states.
Normally, fuel cost accounts for almost 40 per cent of the operational expenses of airlines.
28/01/10 Economic Times
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