Aviation sector asks govt to slash taxes on jet fuel

Indian aviation industry on Tuesday asked the government to slash taxes on jet fuel, exempt aircraft engines from customs duty and rationalise taxation of MROs.

Senior airline, MRO (Maintenance, Repairs and Overhaul) and other aviation industry officials made their case on these and other issues at a pre-budget meeting with Civil Aviation Secretary Ashok Lavasa here, industry sources said. 

The meetings are apparently in preparation for the Civil Aviation Ministry’s briefing for Prime Minister Narendra Modi in the next few days.

Other demands included putting aviation turbine fuel (ATF) in the ‘declared goods’ category so that sales tax on it comes down to about four per cent from the prevailing rates ranging from 28 to 35 per cent across the country, though some states like Chhattisgarh, Jharkhand and West Bengal impose only four per cent.