New Delhi: Civil aviation minister Ashok Gajapathi Raju said on Tuesday
he had asked states to cut jet fuel tax, which the country's struggling
airlines say makes it difficult for them to stay profitable.
Raju said he believed aviation turbine fuel (ATF) was "taxed on the higher side" and that states should "bring down" the tax, without indicating what he considered an appropriate level.
High taxes — many of them set by individual states rather than central government — low fares and a highly competitive market mean all but one of India's big airlines are losing cash. Fuel costs are among the highest in the region.
Shares in listed Indian airlines jumped after Raju's comments, with SpiceJet Ltd closing up 10.03 per cent and Jet Airways Ltd up 6.55 per cent in a market where the Nifty finished the day up 1.16 per cent.
Read news in full 24/06/14 Times of India
Raju said he believed aviation turbine fuel (ATF) was "taxed on the higher side" and that states should "bring down" the tax, without indicating what he considered an appropriate level.
High taxes — many of them set by individual states rather than central government — low fares and a highly competitive market mean all but one of India's big airlines are losing cash. Fuel costs are among the highest in the region.
Shares in listed Indian airlines jumped after Raju's comments, with SpiceJet Ltd closing up 10.03 per cent and Jet Airways Ltd up 6.55 per cent in a market where the Nifty finished the day up 1.16 per cent.
Read news in full 24/06/14 Times of India
No comments:
Post a Comment