New Delhi: In a bid to bring down the cost of air operations , 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 4 per cent tax on it.
At present, sales tax on aviation turbine fuel (ATF) ranges from 4 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 Indian carriers, most of which are facing financial trouble.
Talking to reporters after a meeting, Civil Aviation Minister Ajit Singh said Petrolem Minister M. Veerappa Moily agreed to the proposal.
04/12/12 PTI/The Hindu
