Bangalore: Union Civil Aviation Minister Vayalar Ravi Monday urged states across the country to waive extra sales tax on aviation turbine fuel to minimise the impact of the recent price hike on airlines.
"I urge the states to waive extra sales tax on aviation fuel as Kerala did by not increasing it in commensurate with the fuel hike by oil marketing firms. Otherwise, air travel becomes costlier and passengers face hardship," Ravi said at a civil aviation conference here.
Following a sharp depreciation of the rupee against dollar, state-run oil marketing firms September 15 increased jet fuel price 2.5 percent to Rs.58.45 per litre from Rs.56.97, forcing private airlines like Jet Airways to pass the burden on hapless passengers by increasing air fares Rs.200-300 per ticket on domestic routes.
"I regret to say no other state has followed Kerala in giving relief to the civil aviation industry. I appeal to them (states), irrespective of which party is in power, to lower taxes on turbine fuel," Ravi said.
Noting that air travel was no longer a luxury but a necessity for many, especially for business and personal travel and cargo movement, Ravi said volatile crude prices were alarming to the Indian economy and growth sectors, as frequent increase in fuel prices would reduce affordability.
19/09/11 IANS/Daijiworld.com
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