Friday, January 15, 2016

Centre to meet states on lower tax on jet fuel

New Delhi: Civil aviation minister Ashok Gajapathi Raju will be asking state governments to prune value added tax (VAT) on aviation turbine fuel (ATF).

He has called a meeting here next week of civil aviation ministers across the country. This will also be the final consultation with state representatives before the draft aviation policy is taken to the cabinet, in the last week of January.

The meeting, to be chaired by the union minister, will also be attended by the secretary of civil aviation Rajiv Nayan Choubey and R K Srivastava, chairman, Airports Authority of India (AAI).

A senior ministry official told Business Standard that at the meeting, another attempt will be made to convince states on the need to cut VAT on ATF, presently varying from four to over 30 per cent. The Centre will make an attempt to explain the multiplier effect of a vibrant aviation sector to the economies of states.
15/01/16 Arindam Majumder/Business Standard
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