High taxes reason behind rising jet fuel: Vayalar Ravi

New Delhi: The government Wednesday informed parliament that the cash-strapped Indian airline sector is being troubled by rising air turbine fuel (ATF) prices caused by high sales tax and other levies.
Civil Aviation Minister Vayalar Ravi said in a written reply to the Lok Sabha: "Various taxes imposed by government on ATF is one of the reasons of higher cost of domestic aviation fuel."
According to Ravi, Kolkata topped the charts for highest jet fuel prices at Rs.68,769.64 per kilo litre, followed by Chennai at Rs.61,687.17, Mumbai at Rs.60,733.64.
Domestic jet fuel is being sold at a much higher price than other Asian cities like Kuala Lumpur, where ATF is sold at Rs.41,009.33 per kilo litre, followed by Singapore at Rs.42,289.90 and Dubai at Rs.43,087.33.
On average, sales tax on jet fuel is in the range of 22 percent to 35 percent depending on various states.
30/11/11 IANS/Economic Times

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Categories: Indian Aviation- In General Dec 2011