Sunday, January 10, 2016

Aviation Minister asks States to rationalise tax on jet fuel

Tiruchi:Union Minister for Civil Aviation Ashok Gajapathi Raju on Saturday asked the State governments, including Tamil Nadu, to rationalise taxes on Aviation Turbine Fuel (ATF) so as to energise the aviation industry.

Stating that he had written letters to the Chief Ministers of States and Union Territories on slashing the Value Added Tax on ATF, he said that jet fuel accounted for most part of operational cost of the airlines. There was a strong need to rationalise taxes on ATF to fuel overall growth in aviation and tourism sectors. The Governments should come forward to reduce VAT on aviation fuel.

He was speaking to reporters here after meeting the representatives of various industrial and tourism bodies.

Mr. Raju said only a few States had responded positively. The Governments of Maharashtra, West Bengal and Chhattisgarh had slashed taxes in select airports. Some States, including Andhra Pradesh, had brought down ATF taxes to less than 5 per cent, triggering noticeable growth of passenger and cargo traffic. In Tamil Nadu, tax on ATF was 29 per cent.
10/01/16 The Hindu
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