Airlines want ATF tax sop for regional jets

New Delhi: In a bid to lower costs and to improve regional connectivity, domestic airlines have suggested that the finance ministry should lower sales tax on aviation turbine fuel (ATF) used by regional jets to 4% from the present rate which varies between 4% and 39%. The airline companies have demanded that ATF used in regional jets should be brought under the list of ‘declared goods’ –– on the same lines as the concession provided to turboprop aircraft.
The Federation of Indian Airlines has written to the finance ministry that the sales tax for all regional aircraft should be fixed at par with the 4% sales tax that is currently charged for turboprop aircraft. Civil aviation ministry too has pitched for reduction of sales tax on fuel used by regional jets.
While turboprops enjoy substantially lower sales tax at 4%, regional jets — deployed for similar functions — cost higher as the sales tax concession is not available. Regional jets pay between 4% and 39% for their fuel needs.
19/01/07 Sunny Verma/Economic Times

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