Saturday, November 10, 2018

No tax cuts for airlines, government not ready to lose revenue on fuel

New Delhi: Aviation companies will not get a cut in the levy on Aviation Turbine Fuel (ATF) which they had demanded from the government.

Top sources say that the government is not likely to accept the plea from various airlines, backed by the ministry of civil aviation, that states and oil marketing companies (OMCs) should reduce the taxes, as it happened with petrol and diesel.

Junior minister for Civil Aviation Jayant Sinha had met finance minister last month to urge him to bring aviation turbine fuel (ATF) under the ambit of GST.

Ways to lower input costs for airlines were also discussed in the meeting.

During the meeting, the aviation ministry said that Indian carriers are facing tough business conditions despite India being one of the world's fastest growing markets. The ministry mentioned rising oil prices and depreciating Rupee.
10/11/18 Rahul Shrivastava/India Today