Govt should reduce tax on ATF, not control airfare: Mallya

In light of the Aviation Ministry’s intrusion into controlling airfares; Vijay Mallya, Chairman of Kingfisher Airlines said he sees no case for tapping airfares in the upper or lower band. People pay somewhere in the middle of the fare band, Mallya confirmed. He asked the government to reduce taxation on aviation turbine fuel (ATF) instead so that this savings on taxation could be passed off to consumers.
Mallya said that fares were a function of demand and supply and that it was a fundamental mistake to compare high fares. The media is sensationalising the fare issue, he rues.
06/12/10 Moneycontrol.com

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Categories: Indian Aviation- In General Dec 2010