New Delhi: The finance ministry is considering putting the aviation turbine fuel (ATF) under the category of notified goods, a demand that has been repeatedly made by cash-strapped airlines, struggling under high taxes on the jet fuel.
ATF comprises about 40 per cent of an airline’s costs and due to huge state levy, it is about 50 per cent higher than anywhere in the world and is among the prime reasons for losses incurred by airlines.
If notified as “declared goods”, the jet fuel will attract only 4 per cent central sales tax (CST) as per the CST Act, 1956. Declared goods are goods of special importance under Section 14 of the Act.
08/01/13 Shruti Srivastava/Indian Express
