AviationMin to discuss fuel tax with states today

Sep 10 2013, 01:58 IST
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SummaryThe issue is key for the industry as aviation turbine fuel (ATF) prices constitute around half of an airline’s total operational costs.

With the airline industry looking up to the government for urgent steps to reduce taxes on jet fuel, the civil aviation ministry has called a meet of ministers and officials from the states to discuss the issue of high taxes on the fuel.

The issue is key for the industry as aviation turbine fuel (ATF) prices constitute around half of an airline’s total operational costs.

The meeting, to be addressed by civil aviation minister Ajit Singh and minister of state KC Venugopal, would also discuss issues relating to regional connectivity, development of new airports in different states, apart from VIP plane and helicopter operations and related facilities. Aviation industry sources pointed out that since the dismantling of the Administered Price Mechanism in 2001, ATF prices in India are based on international import parity prices which were directly linked to the benchmark of Platt’s publication of FOB (free on board) Arabian Gulf prices.

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