Aviation industry pitches for infrastructure status in Budget

Mumbai: For the first time, the aviation industry wants the government to give the sector infrastructure status in the Budget 2010-11. Meanwhile, the Federation of Indian Airlines (FIA) had recently met the finance ministry to reiterate its demand to rationalise taxes on aviation turbine fuel (ATF), which constitutes over 40% of the operating cost, compared to 20% globally.
Paramount Airways CEO M Thiagarajan said, "As the aviation sector is an integral part of India's economic growth engine, it is important that certain benefits in the form of uniform sales tax on ATF, bringing it into the declared goods category, should be implemented immediately." He further said airlines are connecting tier I and tier II cities, hence, concessions may be considered in terms of airport fees and other charges.
Rationalising taxes on ATF is a long-standing, unresolved issue for the industry. Airlines have been lobbying for quite some time with the government to bring the commodity under the 'declared goods' category so that it attracts a uniform tax of 4% pan-India. Taxes on ATF in various states across the country vary from 4-33%.
18/02/10 Shaheen Mansuri/Financial Express

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Categories: Indian Aviation- In General Feb 2010