Logistics

‘States must lower tax on jet fuel'

Ashwini Phadnis Shishir Sinha New Delhi | Updated on March 12, 2018 Published on January 11, 2012

The Government will soon take steps to lower the operating cost of domestic airlines and make air travel more affordable, newly appointed Minister for Civil Aviation, Mr Ajit Singh, has said.

Mr Singh is set to write to all the State Governments on the issue of taxation of aviation turbine fuel. In addition, the Secretary Civil Aviation will meet with the aviation secretaries of all States to work on a method of bring down State taxes on ATF.

“High cost of ATF is what the airlines blame the Government. What they want is for the Government to cut the cost of ATF. Some want to import directly which we have allowed. But I do not think that will solve all their problems of ATF pricing as taxes are very high,” Mr Singh told Business Line in an exclusive interview.

The Minister said that while the Government will lend a helping hand to Air India as it was a public sector company, the Maharaja also needs to become more competitive. “Our view is that Air India has to go by industry norms. They cannot be entirely aloof from what industry norms are. Somewhere, somehow, they have to become competitive,” he said.

Mr Singh felt that the Government cannot bail out a private enterprise. “It is for Kingfisher or any other company to satisfy the banks with their business. If the banks think that it is a viable, if they think they will get their money back they will give money,” he added.

>ashphadnis@thehindu.co.in

Published on January 11, 2012
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