Underlining that the states have a lot to contribute and gain from the civil aviation sector, the Centre on Friday called upon them to review and rationalise their taxation policy on jet fuel and land acquisition practices.

This would encourage the expansion of civil aviation sector which would help the states reap the benefits of its unprecedented growth, civil aviation minister Praful Patel said, while addressing the first-ever National Civil Aviation Conference, involving state governments, here.

“States must not look at aviation as a milching cow. There is cut-throat competition in this sector. Airlines are losing money, mainly because of competition and high taxes.”

Patel said if the taxes, particularly state sales tax, were rationalised, then it would encourage more airlines to fly into a state, leading to creation of aviation as well as tourism infrastructure that would in turn create jobs and income through a multiplier effect.

On the issue of land acquisition, Patel said while the Airports Authority of India and other agencies would help develop airports, it was now the prime responsibility of state governments to provide land for new ones as well as expanding the existing ones.

The conference was attended by Tourism Minister Ambika Soni, Planning Commission Deputy Chairman Montek Singh Ahluwalia, ministers of several states and officials of Tourism, Finance and Civil Aviation Ministries.