New Delhi: The Centre is to make another attempt to convince states on
the need to bring down the operating costs for domestic airlines.
With this objective in mind, Ashok Gajapathi Raju, the newly appointed Union Civil Aviation Minister, has called a meeting of civil aviation ministers of the states and union territories here on August 21.
A senior officials of the Ministry told Business Line that at the meeting another attempt will be made to convince the states to bring down the high sales tax that some charge on aviation turbine fuel. At the moment, the sales tax on ATF varies from 4 per cent to over 30 per cent. The Centre will make an attempt to explain the multiplier effect of a vibrant aviation sector to the economies of the states.
"This Government is keen that there is healthy competition in the sector. We do not want another Kingfisher like situation as this could lead to thousands of people being on the road," the official said.
Read news in full 15/07/14 Ashwini Phadnis/Business Line
With this objective in mind, Ashok Gajapathi Raju, the newly appointed Union Civil Aviation Minister, has called a meeting of civil aviation ministers of the states and union territories here on August 21.
A senior officials of the Ministry told Business Line that at the meeting another attempt will be made to convince the states to bring down the high sales tax that some charge on aviation turbine fuel. At the moment, the sales tax on ATF varies from 4 per cent to over 30 per cent. The Centre will make an attempt to explain the multiplier effect of a vibrant aviation sector to the economies of the states.
"This Government is keen that there is healthy competition in the sector. We do not want another Kingfisher like situation as this could lead to thousands of people being on the road," the official said.
Read news in full 15/07/14 Ashwini Phadnis/Business Line
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