The Hindu : Business : Patel for lowering of taxes on ATF

Online edition of India's National Newspaper
Thursday, Jan 17, 2008
ePaper | Mobile/PDA Version

Business

Business

Patel for lowering of taxes on ATF

Special Correspondent

NEW DELHI: Civil aviation Minister Praful Patel on Wednesday urged Finance Minister P. Chidambaram to rationalise the tax structure in the aviation industry, including levies and duties on aviation turbine fuel (ATF), in the budget for 2008-09.

In a pre-budget meeting with Mr. Chidambaram here, he also sought extension of tax rebate given to the newly-merged Air India to help it in its consolidation process so that it could avail itself of the benefits of carry forward and set off of accumulated losses and unabsorbed depreciation by amending Sec. 72-A of the Income-tax Act.

Mr. Patel also sought withdrawal of service tax on first class and business class air tickets, arguing this was putting domestic airlines in a disadvantageous position vis-a-vis foreign airlines on whom this tax was not applicable.

Mr. Patel pointed out that the high price of ATF in India was contributing to large losses being incurred by the airline industry as the ATF alone accounted for about 40 per cent of the total operating costs for airlines in India.

The industry has been demanding the ‘Declared Goods’ status for aviation turbine fuel which would attract 4 per cent sales tax uniformly across India.

Printer friendly page
Send this article to Friends by E-Mail

Business