Bengaluru: Union civil aviation minister Ashok Gajapathi Raju said he has written to all the chief ministers including Karnataka CM Siddaramaiah to reduce taxes on aviation turbine fuel (ATF) and remove impediments that have dampened the prospects of the aviation industry.
The sales tax on ATF is as high as 30% in some states, making it difficult for airline operators who incur over 40% of operational costs from jet fuel. Karnataka imposes a sales tax of 28% on ATF, one of the highest in the country. "We are requesting the state governments to become aviation friendly. Taxes are required, but taxing to death is not required," he said in Bengaluru on Sunday, at an event to flag off city-based Air Pegasus' maiden commercial flight service to Hubballi and Thiruvananthapuram.
Raju said some states had responded to the Centre's call to reduce. "Those states have been a spurt in aviation activities," he said.
13/04/15 Times of India
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The sales tax on ATF is as high as 30% in some states, making it difficult for airline operators who incur over 40% of operational costs from jet fuel. Karnataka imposes a sales tax of 28% on ATF, one of the highest in the country. "We are requesting the state governments to become aviation friendly. Taxes are required, but taxing to death is not required," he said in Bengaluru on Sunday, at an event to flag off city-based Air Pegasus' maiden commercial flight service to Hubballi and Thiruvananthapuram.
Raju said some states had responded to the Centre's call to reduce. "Those states have been a spurt in aviation activities," he said.
13/04/15 Times of India
