Financial Daily from THE HINDU group of publications
Monday, Dec 13, 2004

Cross Currency

Group Sites

Industry & Economy - Industry Associations
Logistics - Airlines

CII for scrapping import duty, sales tax on aviation gasoline

Our Bureau

New Delhi , Dec. 12

THE Confederation of Indian Industry (CII) has suggested that the import duty and sales tax on aviation gasoline (AVGAS) be removed to provide the much-needed boost to the Indian aviation industry.

According to CII, the import duty and sales tax on AVGAS has rendered the aviation sector uncompetitive, and the move would greatly benefit the industry. CII added that the high excise duty and the exorbitant sales tax adversely affected the viability of domestic airlines and affordability of air transport. It has recommended that excise and sales duty on aviation turbine fuel (ATF) be brought down; ATF be categorised as a "declared good" under the Central Sales Tax Act so that the sales tax on ATF does not exceed 4 per cent; and excise duty be brought down to 4 per cent.

CII has, however, welcomed the abolition of inland air travel tax (IATT) as suggested by the Naresh Chandra Committee, which was 15 per cent of airfare. Aviation-related taxes and fees such as IATT, foreign travel tax (FTT) and passenger service fee (PSF) might be replaced with a single, lower and sector-specific ad valorem cess of 5 per cent of the actual airfare and the proceeds can be used to subsidise uneconomical, but essential air services, the chamber said in a statement. CII has also welcomed the recommendation of permitting domestic private airlines to provide third party ground handling services, and added that it should be only for Indian nationals.

On the Committee recommendation of the need for interface with other Ministries, CII has said that for implementation of the recommendations and to make them obligatory for the statutory service provider to deliver the desired service, different agencies must be bound tightly by a MoU.

More Stories on : Industry Associations | Airlines | Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bush starts focusing on social security system

Meet on Millennium Development Goals begins in Thiruvananthapuram
Chautala Govt announces wide-ranging relief
Kerala plans `Health Vision 2025' document
Kerala: Nobel laureate to open meet on polymers
Panel to study options to keep life-saving drugs affordable
APGenco to set up two gas-based power projects
Service tax collection target may be hiked
`VAT will help improve revenue'
CII organising iTalent meet for students
Coimbatore college to enter pact with TUV Rheinland
`Auto components sector needs structural changes to face competition'
German food cos see potential for joint ventures
`Demand growing for GIA courses'
CII for scrapping import duty, sales tax on aviation gasoline
Flat tape makers seek withdrawal of reservation for jute sector
Beyond the festival
`Modern management tool vital for public welfare '
VisaPro workshop tomorrow
Regional forum
`No restoration of export incentives for sugar'
Home stays are a Coorg speciality
Drive to clean up tourist spots in Kerala
Kerala tourism handbook

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line