Maharashtra planning to reduce tax on aviation fuel

Mumbai: The Maharashtra government is mulling to reduce sales tax on aviation fuel to bring it at par with other hubs like Delhi, Chief Minister Prithviraj Chavan has said.
The state is currently working on a proposal to lower sales tax on jet fuel and an announcement on the issue may be made soon, he said.
"We need to reduce tax on aviation turbine fuel to at least to what other major destinations like Delhi (have)...I will be able to give you a good news on that very soon," Chavan said at a function here over the weekend.
Jet fuel constitutes almost half of an airline's operating costs, compared to 20-25 per cent globally, due to high taxes on ATF levied by different states -- ranging from four to 30 per cent.
Chavan said that Civil Aviation minister Ajit Singh has "convinced" the state government about the need to bring down tax on ATF.
02/09/12 Press Trust of India/Business Standard

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Categories: Indian Aviation- In General Sep 2012