In an exclusive interview with IANS, Civil Aviation Minister, Ajit Singh said: “High price of aviation turbine fuel is the biggest issue. We need to rationalise it. I have already written to the petroleum minister and I will also meet him in a couple of weeks," said Singh, referring to a proposal to notify this fuel as a declared good.
Once a product is listed as a declared good, a uniform sales tax is payable on it. In the case of aviation, airlines will have to pay a four percent sales tax across all states, as opposed to a wide fluctuation of 3?34 percent. Oil regulator will also be in a position to keep a check on prices.
At present, aviation fuel in India is nearly 50-60 percent dearer than in countries such as Thailand, Singapore or the UAE, due to the additional 3-34 percent sales tax imposed by states. This pushes the cost of operations by close to 30 percent.
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