Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday urged 8 states and Union Territories to reduce tax on jet fuel as there is a huge demand for air travel after the Covid-19 pandemic.
Union Civil Aviation Minister Jyotiraditya Scindia
Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday, October 18, 2022, stated there is a huge demand for air travel after the pandemic and urged 8 states and Union Territories to reduce the tax on jet fuel.
Air traffic increase will be driven by smaller cities, he stated while speaking at the Civil Aviation Ministers’ conference in the national capital.
Domestic air traffic is inching closer to the pre-Covid level and in recent times, the daily traveler’s numbers crossed the 4 lakh mark twice.
Union Civil Aviation Minister Jyotiraditya Scindia stated that Value Added Tax (VAT) on jet fuel is still high in 8 states and Union Territories in the range of 20-30 percent and urged them to reduce the rate. Jet fuel cost accounts for a significant part of an airline’s operational prices.
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“New development to arrive from Tier 2 and 3 cities,” he said and emphasized the need to bring down entry barriers in the context of high VAT on jet fuel in some states. Currently, 28 states and Union Territories have VAT on jet fuel in the range of 1-4 percent, he said.
Aviation turbine fuel
He described the country’s civil aviation sector as a ‘towering phoenix’, and operating seamlessly in a high-demand environment compared to problems faced by passengers & airports in different parts of the world.
Last month, the price of ATF (aviation turbine fuel) saw a cost cut in Delhi after the Central government increased the windfall profit tax on jet fuel exports. The price of jet fuel was cut by 0.7% ( ₹874) to ₹1.21 lk/kl from ₹1.22/kl in the national capital.
The Centre had increased the windfall profit tax on ATF to ₹9 a liter. The tax on Aviation Turbine Fuel exports had been hiked from ₹2 per liter from September 1 this year.
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