The government is once again trying to include aviation turbine fuel (ATF) in the goods and service tax (GST) to bring about uniform taxation on the fuel, which comprises around 60% of the cost of airline companies.
There were proposals to this effect earlier also but a final decision has not been taken.
So far, petroleum products have been kept outside the ambit of GST.
Even if ATF gets included in GST, it does not mean that other petroleum products would get included as well.
Any decision on ATF taken by the government needs to be approved by the empowered committee of the state finance ministers.
If ATF becomes a part of GST, the tax on the fuel will go down to 4% from 30%. Aviation secretary RN Choubey had said earlier the ministry will talk to individual state governments to reduce the prices of ATF so that it benefits airlines, which have run in losses for years.
The inclusion of ATF in GST is also a part of the draft civil aviation policy which has been in the works for more than eight months now, and delayed by over four months.
In 2011, the oil industry had demanded inclusion of natural gas and all crude oil products in GST. Even bodies represented by public and private sector companies had written to the government to include crude oil, petrol, diesel, ATF and natural gas, but that has not happened yet.