Airline ind wants FM to rationalise tax on ATF

Ahead of the presentation of the Budget, the airline industry has urged the government to rationalise taxes on jet fuel, continue the exemption on withholding tax (WHT) on leased planes and remove service tax on First and Business class air travel.

Observing that aviation turbine fuel (ATF) accounted for about 40 per cent of the total operating costs for airlines in India, the industry has sought reduction in customs duty on ATF, slashing of excise duty to four per cent and making ATF a ‘declared good’ attracting a uniform four per cent tax across the country, sources said.

They said the annual fuel bill for the entire industry was estimated to be around 1.7 billion US dollars, based on the September 2006 rates.

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