New Delhi: Saddled with huge losses, India’s gloomy aviation sector is hoping for some respite in the upcoming Union Budget.
Besides its long standing demand to make Aviation Turbine Fuel (ATF) a declared good, the sector is also looking at abolishment of service tax on tickets.
“Time and again DGCA tells us not to hike airfares but there isn’t much that has been done for the sector to bring the fares down,” said a low-cost carrier’s head on condition of anonymity.
In India, ATF accounts for about 50% of costs for domestic carriers. Making ATF a declared good would mean that the tax rate of 4% can be applied. Currently, taxes are as high as 30% on ATF depending on the state.
19/02/13 Vishakha Talreja/New Indian Express
