Monday, January 20, 2020

Govt mulls levying specific rate of excise duty on aviation turbine fuel

In what may come as a relief to the airlines operating in India, the central government is reported to be considering shifting aviation turbine fuel (ATF) to specific rate of duty instead of the current system of imposing ad valorem duty.

The difference between the two is that with the ad valorem duty, the cost of ATF keeps going up or down with the price of the fuel whereas with the specific duty it is per litre irrespective of the price. Petrol and Diesel enjoy the specific rate of duty currently. ATF is currently chargeable at 11% ad valorem rate of excise duty.

The modification in the duty structure may be part of the announcements in the Union Budget to be presented to the Parliament by the Finance Minister Nirmala Sitharaman on February 1, 2020.
20/01/20 News Minute
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