New Delhi: The government on Wednesday cut excise duty on jet fuel from 14% to 11% to help keep airfares under check and to give relief to airlines troubled by high fuel prices.
A notification from the finance ministry’s revenue department said the revised duty will be effective from Thursday.
The move comes at a time when high jet fuel prices and a weaker rupee have kept airline finances under pressure, with companies having limited headroom in raising fares without losing market share as the domestic aviation market is very price sensitive. Excise duty on jet fuel was increased in March 2014 from 8% to 14%. In the case of routes covered under the government’s regional connectivity scheme, jet fuel is already taxed at a lower rate of 2% from 1 July 2017.
Rising oil price and a weaker rupee have in recent months pushed up costs for industries with high energy requirement. To give relief to consumers, the government last Thursday cut excise duties on petrol and diesel by 1.5 a litre each and asked state-run fuel retailers to absorb 1 per litre on the auto fuels.
12/10/18 Navhind Times
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A notification from the finance ministry’s revenue department said the revised duty will be effective from Thursday.
The move comes at a time when high jet fuel prices and a weaker rupee have kept airline finances under pressure, with companies having limited headroom in raising fares without losing market share as the domestic aviation market is very price sensitive. Excise duty on jet fuel was increased in March 2014 from 8% to 14%. In the case of routes covered under the government’s regional connectivity scheme, jet fuel is already taxed at a lower rate of 2% from 1 July 2017.
Rising oil price and a weaker rupee have in recent months pushed up costs for industries with high energy requirement. To give relief to consumers, the government last Thursday cut excise duties on petrol and diesel by 1.5 a litre each and asked state-run fuel retailers to absorb 1 per litre on the auto fuels.
12/10/18 Navhind Times
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