Mumbai: Renewing efforts to urge state governments to rationalise taxes on jet fuel and resolve issues hindering the growth of aviation in the country, Ashok Gajapathi Raju Pusapati, Minister for Civil Aviation, Government of India, is looking at visiting and holding consultations with two states every month.
Raju plans to visit all 29 states over the next year starting with Goa, Tamil Nadu and Kerala this month. In October, the minister has meetings scheduled with civil aviation authorities in Maharashtra, stated a Business Standard report by Sharmistha Mukherjee.
A senior official in the Ministry of Civil Aviation (MoCA), said, “The Minister has decided to reach out to states to discuss and resolves issues pertaining to air connectivity, infrastructure development and rationalisation of taxes on Aviation Turbine Fuel (ATF). We will go to their doorstep and make all efforts to catalyse growth of the civil aviation sector.”
Taxes on ATF in India are among the highest in the world and are considered to be one of the major reasons for the mounting losses of local airlines. Fuel costs account for as much as 50 per cent of the operational expenses of an airline in India. The Value-Added Tax (VAT) on ATF ranges from 4 per cent to 30 per cent, depending on the Sales Tax levied by a state.
05/09/14 TravelBizMonitor
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Raju plans to visit all 29 states over the next year starting with Goa, Tamil Nadu and Kerala this month. In October, the minister has meetings scheduled with civil aviation authorities in Maharashtra, stated a Business Standard report by Sharmistha Mukherjee.
A senior official in the Ministry of Civil Aviation (MoCA), said, “The Minister has decided to reach out to states to discuss and resolves issues pertaining to air connectivity, infrastructure development and rationalisation of taxes on Aviation Turbine Fuel (ATF). We will go to their doorstep and make all efforts to catalyse growth of the civil aviation sector.”
Taxes on ATF in India are among the highest in the world and are considered to be one of the major reasons for the mounting losses of local airlines. Fuel costs account for as much as 50 per cent of the operational expenses of an airline in India. The Value-Added Tax (VAT) on ATF ranges from 4 per cent to 30 per cent, depending on the Sales Tax levied by a state.
05/09/14 TravelBizMonitor
