The prices of your routine domestic flight tickets is set to go up in the next days, and it's not just the approaching holiday season in December that's to blame. In order to meet its falling revenue target, the Arvind Kejriwal government may soon increase the value added tax (VAT) on the Aviation Turbine Fuel (ATF) from the current 20 per cent to 25 per cent.. As a result, all domestic aircrafts buying jet fuel from Delhi will have to pay five per cent extra VAT, which aviation experts believe is likely to percolate to the passengers through an increase in the ticket cost.
Government sources say the decision is likely to be implemented within the next 10 days. The increase in VAT is likely to fetch an additional monthly revenue of at least Rs6 to Rs7 crore to the Delhi government, with about 62,000 lakh kilo litres of jet fuel is consumed in Delhi every month for domestic flights. Sources informed that the decision was taken in the light of poor VAT revenues collected from ATF, which had gone down significantly since the beginning of this year because of a massive decline in global oil prices.
According to sources, being the capital, the domestic airport of Delhi serves as the origin as well as the transit point to hundreds of flights every day and many aircrafts refill their jet fuel from here. "The VAT was increased by only five percent to ensure that least impact on the aviation sector and the passengers," an official said. In the last budget session, the AAP government had introduced a VAT Amendment Bill that will allow the government to hike the tax on 11 goods by up to 30 per cent in future, taking into account the poor VAT collection in the previous few months. VAT accounts for a major source of revenue for the Delhi government.
16/11/15 Amrita Nayak Dutta/dna
To Read the News in full at Source, Click the Headline
Government sources say the decision is likely to be implemented within the next 10 days. The increase in VAT is likely to fetch an additional monthly revenue of at least Rs6 to Rs7 crore to the Delhi government, with about 62,000 lakh kilo litres of jet fuel is consumed in Delhi every month for domestic flights. Sources informed that the decision was taken in the light of poor VAT revenues collected from ATF, which had gone down significantly since the beginning of this year because of a massive decline in global oil prices.
According to sources, being the capital, the domestic airport of Delhi serves as the origin as well as the transit point to hundreds of flights every day and many aircrafts refill their jet fuel from here. "The VAT was increased by only five percent to ensure that least impact on the aviation sector and the passengers," an official said. In the last budget session, the AAP government had introduced a VAT Amendment Bill that will allow the government to hike the tax on 11 goods by up to 30 per cent in future, taking into account the poor VAT collection in the previous few months. VAT accounts for a major source of revenue for the Delhi government.
16/11/15 Amrita Nayak Dutta/dna
