Wednesday, October 04, 2017

SpiceJet pitches for bringing ATF under GST

Bringing aviation fuel under the GST ambit can help in reducing costs by up to 15 percent, according to SpiceJet chief Ajay Singh.

Aviation turbine fuel (ATF) accounts for a significant chunk of an airline's operational costs which also has an impact on air ticket prices.

Currently, ATF is not under the Goods and Services (GST) ambit and the levy on it is different in various states.

Singh, who is the Chairman and Managing Director of SpiceJet, today said there has to be a long-term solution for the ATF issue.

He was responding to a query about the recent rise in ATF prices.

"We have requested the government and the GST Council to bring ATF under the ambit of the GST," he said here.

Singh said that such a move would help bring down costs by around 10-15 percent.
04/10/17 Moneycontrol
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