Maha mulling relief on ATF tax to help airlines

Mumbai: Maharashtra Chief Minister Prithviraj Chavan has indicated that the state government may share an "equitable burden" with the Centre to provide relief to the aviation sector by reducing sales tax on aviation turbine fuel (ATF). "The country needs a very robust aviation sector, and a developed state like Maharashtra needs it much more than a state like Mizoram or Manipur," Chavan said here. "It is clear that the aviation industry is bleeding. Always, when they (airlines) come to us, they request us for lower ATF rates," Chavan said, interacting with reporters at his official residence here two days ago. "The Centre has allowed them to import ATF directly, which means it has lost revenue in some or the other way," the Chief Minister said, adding that the state was also ready to bring down sales tax on the jet fuel. "I have not calculated how much impact will be there." "In 2008, the Centre gave a huge stimulus package to revive the aviation industry. I think the state will also have to share an equitable burden that the Centre is sharing. We need a healthy airline industry."
12/02/12 PTI/IBN Live

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Categories: Indian Aviation- In General Feb 2012