Oil companies flag roadblocks in rationalising taxes on jet fuel

NEW DELHI: Oil marketing companies have cited issues like sales tax as a barrier to the Civil Aviation Ministry’s plan to rationalise additional charges that airlines have to pay while uplifting aviation turbine fuel (ATF) at airports across India, officials said.

Currently, airlines have to pay taxes for certain services, such as ‘throughput charges’, ‘into-plane charges’ and ‘fuel-infrastructure charges’ when they take the ATF at any airport for their planes.

“These charges are taxed multiple times as they are billed in a circuitous manner,” a senior government official said.

A second official said the Ministry of Civil Aviation had formed a committee to develop a direct-billing mechanism between airline companies and airport operators so that these multiple taxes can be removed.