Aviation turbine fuel under GST will ensure level playing field for domestic airlines: Suresh Prabhu

New Delhi, April 09, 2019: Aviation turbine fuel (ATF) should be brought under the Goods and Services Tax (GST) regime as it will ensure a level playing field for the domestic airline industry, Civil Aviation Minister Suresh Prabhu said.

He said input costs should be competitive for any sector and the ministry has been of the strong view that the fuel should be brought under the GST regime according to reports published in firstpost.com

Different rates of taxes in states pushes the price of ATF, he said.

“Each state has a different tax. Due to this, the refuelling (for airlines) cost completely changes. We feel that it should be done. I hope the GST Council takes a call on that and we are pursuing this with the council continuously,” the minister said.

“We will work on it that aviation fuel should also be brought under GST for predictability and for ensuring level playing field,” the minister told PTI in an interview.

Airlines have been demanding inclusion of ATF in the new indirect tax regime.

Airlines could expect an annual relief of up to Rs 5,000 crore by way of input tax credit if ATF is brought under GST.

The move could cushion them from the burden of increased jet fuel prices, besides providing relief to customers.

Your guide to the latest election news, analysis, commentary, live updates and schedule for Lok Sabha Elections 2019 on firstpost.com/elections. Follow us on Twitter and Instagram or like our Facebook page for updates from all 543 constituencies for the upcoming general elections.

Leave a Reply

Your email address will not be published. Required fields are marked *