New Delhi: The Civil Aviation Ministry on Friday said it would continue to press state governments to reduce taxes on jet fuel to provide some relief to the cash-strapped airlines which were reeling under the impact of the rupee slide and hike in crude prices.
Industry leaders and experts expressed concern over the rising cost of operations of the airline industry, but cautioned it not to take “irrational steps” like getting into a price war as such a move would further impact their financial bottomline.
“The rise in ATF (aviation turbine fuel) prices will have an impact. We have been requesting the state governments to consider reduction in taxes they levy on ATF, keeping in mind the rising oil prices,” Civil Aviation Secretary K N Shrivastava said on the sidelines of an ASSOCHAM conference on aviation here.
While the governments of Jharkhand, Chhattisgarh, West Bengal, Rajasthan and Madhya Pradesh have reduced taxes on jet fuel, “we are pursuing other states to follow suit and are assuring increased (air) connectivity if they did”, he said.
30/08/13 PTI/Business Line
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Industry leaders and experts expressed concern over the rising cost of operations of the airline industry, but cautioned it not to take “irrational steps” like getting into a price war as such a move would further impact their financial bottomline.
“The rise in ATF (aviation turbine fuel) prices will have an impact. We have been requesting the state governments to consider reduction in taxes they levy on ATF, keeping in mind the rising oil prices,” Civil Aviation Secretary K N Shrivastava said on the sidelines of an ASSOCHAM conference on aviation here.
While the governments of Jharkhand, Chhattisgarh, West Bengal, Rajasthan and Madhya Pradesh have reduced taxes on jet fuel, “we are pursuing other states to follow suit and are assuring increased (air) connectivity if they did”, he said.
30/08/13 PTI/Business Line
