Aviation Ministry pitches for 4% tax on jet fuel in six metro airports

New Delhi: The Ministry of Civil Aviation estimates that a uniform four per cent sales tax on aviation fuel at the six metro airports will generate economic benefit of over Rs 40,000 crore and more than offset the Rs 1,500-crore annual loss to the exchequer.
In a recent report, the Ministry estimates that rationalisation of sales tax at four per cent will lead to creation of between 20,000 and 30,000 jobs which could have an economic impact of Rs 700-1,000 crore a year.
In addition, the improved share of Indian carriers in India's international traffic is likely to result in increase of revenues of up to Rs 12,000 crore annually.
At the moment the sales tax on ATF varies from four per cent to 30 per cent across the country.
04/06/12 Business Line

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Categories: airports Jun 2012, Indian Aviation- In General Jun 2012