In a bid to bring down the cost of air operations in the country, Civil Aviation and Petroleum ministries would make a joint representation to the Finance Ministry to notify jet fuel as a 'declared good', enabling levying of a flat four percent tax on it.
At present, sales tax on aviation turbine fuel (ATF) ranges from four to 35 per cent, varying from state to state. The cost of jet fuel accounts for about 40 per cent of the operating cost of the Indian carriers, most of which are facing financial trouble.
The decision to jointly approach the Finance Ministry on the issue was taken at a meeting between Civil Aviation Minister Ajit Singh and Petroleum Minister M Veerappa Moily here today.
Talking to reporters after the meeting, Singh said Moily agreed to the proposal.
Moily said his ministry was in agreement on giving declared goods status but the issue has to be decided by the Finance Ministry. "We will jointly make a representation to the Finance Minister," the oil minister said.
04/12/12 PTI/Business Standard
