doc
Jul 28, 02, 5:50 pm
Aviation Ministry For Capping ST For ATF
The ministry of civil aviation has raised a clarion call to revive the recession-hit airlines. The ministry will take up a proposal with the Committee of secretaries (CoS) to rationalise aviation turbine fuel (ATF) prices by capping sales tax on it at 4 per cent or reducing levies including the excise duty.
The ministry is backed by the industry’s argument that sales tax revenue from ATF for a state like Maharashtra is not even one per cent (Rs 10 crore) of a total collection of Rs 1,100 crore.
A reduction in ATF price is significant, as fuel costs comprise 30 to 35 per cent of the total operating cost in domestic operations as against 11 to 15 per cent for international carriers.
During 2000-01, ATF cost added Rs 231 crore to the operating cost of domestic and international flights of Indian Airlines.
http://www.financialexpress.com/fe_full_story.php?content_id=14013
The ministry of civil aviation has raised a clarion call to revive the recession-hit airlines. The ministry will take up a proposal with the Committee of secretaries (CoS) to rationalise aviation turbine fuel (ATF) prices by capping sales tax on it at 4 per cent or reducing levies including the excise duty.
The ministry is backed by the industry’s argument that sales tax revenue from ATF for a state like Maharashtra is not even one per cent (Rs 10 crore) of a total collection of Rs 1,100 crore.
A reduction in ATF price is significant, as fuel costs comprise 30 to 35 per cent of the total operating cost in domestic operations as against 11 to 15 per cent for international carriers.
During 2000-01, ATF cost added Rs 231 crore to the operating cost of domestic and international flights of Indian Airlines.
http://www.financialexpress.com/fe_full_story.php?content_id=14013