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Deccan Herald » National » Detailed Story
Centre urges states to reduce sales tax on ATF
DH News Service, New Delhi:
The Centre on Wednesday urged Karnataka and other states to reduce sales tax on aviation turbine fuel (ATF) as Maharashtra became the third state to do so.


Within hours after Maharashtra announcing that it has reduced sales tax (ST) to four per cent on jet fuel, aviation minister Praful Patel said states which attract large number of air passengers such as Delhi, Karnataka, Tamil Nadu, West Bengal should follow suit.

“Already Andhra Pradesh has reduced it from 33 per cent and Kerala from 29 to four per cent. Maharashtra has done it. But this is not enough, other states also should follow,” Patel said.

Speaking on the sidelines of a function organised to lay foundation stone for the headquarters of the Bureau of Civil Aviation Security (BCAS), Patel said the move by these states made economic sense as cheaper fuel would lead to cheaper tickets thereby attracting more air travellers to these states. “The aviation sector should not be burdened by additional taxes. It is time for everyone to make the sector healthy and competitive,” he said.

However, Patel was not happy that Maharashtra announcement did not cover Mumbai and Pune airports which corner over 80 per cent of air passenger traffic in the state. “It means nothing. Why should they leave the two cities out? The third major airport, Nagpur, is already charging only four per cent ST on ATF,” he quipped.

Earlier, Patel stressed the need for greater co-ordination between the BCAS and other agencies to ensure fool-proof aviation security. Scope and scale of security operations in the country were very large as there were over 80 functional airports at present.

“The  issue of security has undergone a marked change after the Kanishka [Air India bombing] and AC-814 [Indian Airlines hijack] incidents. The issue of security also becomes important because of the environment around us,” he added.

Ministry secretary Ashok Chawla said the government was keen on opening a civil aviation security academy.

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