New Delhi: The BJP-led government is looking to include aviation turbine fuel (ATF) in the list of products to be covered by the proposed goods & services tax (GST), ensuring uniform tax on the fuel across all states.
Jet fuel in India is almost 60 per cent higher than other countries and represents 40-50 per cent of a carrier’s operating costs. Besides, the tax imposed on the fuel by the state is steep, averaging around 30 per cent.
Officials in the aviation ministry said they were working with the finance ministry to bring the fuel within the ambit of GST as part of the new aviation policy.
States have been demanding that all petroleum and alcohol products should be excluded from GST so that they can continue to levy taxes on them.
“We want jet fuel to be part of the GST. This will reduce taxes on the fuel by a huge margin and at one stroke, make aviation profitable in this country,” said the officials.
The GST regime aims to replace multiple state and central levies with a single tax regime.
16/11/14 Jayanta Roy Chowdhury/Telegraph
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Jet fuel in India is almost 60 per cent higher than other countries and represents 40-50 per cent of a carrier’s operating costs. Besides, the tax imposed on the fuel by the state is steep, averaging around 30 per cent.
Officials in the aviation ministry said they were working with the finance ministry to bring the fuel within the ambit of GST as part of the new aviation policy.
States have been demanding that all petroleum and alcohol products should be excluded from GST so that they can continue to levy taxes on them.
“We want jet fuel to be part of the GST. This will reduce taxes on the fuel by a huge margin and at one stroke, make aviation profitable in this country,” said the officials.
The GST regime aims to replace multiple state and central levies with a single tax regime.
16/11/14 Jayanta Roy Chowdhury/Telegraph
