Centre may ask states to lower tax on aviation fuel

New Delhi: The Centre is likely to ask states to lower tax on aviation fuel as a measure to discourage cash-strapped airlines from going in for cheaper imports.

The Directorate General of Foreign Trade has given approval to Kingfisher, SpiceJet, IndiGo and GoAir to import fuel worth $1.3 billion, a move that can help carriers lower their fuel bill. The airlines, however, are yet to begin imports. "We expect all major airlines to apply for direct imports in the coming months," an official told ET.

"Since state governments would anyway not get taxes on such imports, they may as well bring down tax levels so that airlines are not forced to go in for imports," the official added.
27/06/12 Amit Set/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Jun 2012