FM looking at jet fuel excise relief: Scindia

NEW DELHI: Prices of aviation turbine fuel (ATF), or jet fuel, have risen “inexorably” in recent times and are putting a “tremendous amount of pressure” on Indian carriers. Aviation minister Jyotiraditya Scindia told TOI on Thursday that while he is in constant touch with the 12 state governments that still levy VAT in the range of 10-30%, he has requested the finance ministry to rationalise excise on jet fuel.
High base price of ATF – it kept rising even as politically sensitive petrol and diesel were untouched during the recent state election times – coupled with even higher rates of VAT and excise duty has made jet fuel for domestic flights in India among the most expensive globally. “Till a few months back, 11 states charged VAT ranging 1-4% on ATF, while 25 did so in the range of 10-30%. Our efforts have now led to a reversal of situation where today 24 states charge 1-4% and 12 charge 10-30%. We are working on the remaining states also,” Scindia said. However, states with the biggest metro hubs like Delhi and Mumbai are yet to lower their taxes.