Oil min may reject ATF import move

New Delhi: This could disappoint Kingfisher Airlines, which hopes to import jet fuel without attracting state taxes and on credit from foreign suppliers. The petroleum ministry is set to reject the Director General of Foreign Trade’s (DGFT) proposal for letting private parties to import jet fuel as the country has surplus production.
“There is no question of allowing imports when we are a net exporter of ATF,” a person privy to the petroleum ministry’s thinking said. India exported 2.86 million tonne of jet fuel in the April-October period this year, earning $2.87 billion.
The official said that by importing jet fuel, user industries hope to save the state level taxes on the commodity in the range of 25%-30%. The central tax on on ATF is anyway very low, only 8% excise duty on domestic production. A matching 8% customs duty is to be paid if somebody imports the commodity.
12/12/11 Gireesh Chandra Prasad/Timsy Jaipuria/Financial Express

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Categories: Foreign Dec 2011, Indian Aviation- In General Dec 2011