Excise duty on aviation fuel reduced to 11 percent to 14
Days after central excise duty cut in petrol and diesel, the government on Wednesday reduced the excise duty on aviation fuel to 11 per cent from 14 per cent in order to provide relief to airlines from high fuel costs.
- Country:
- India
Days after central excise duty cut in petrol and diesel, the government on Wednesday reduced the excise duty on aviation fuel to 11 per cent from 14 per cent in order to provide relief to airlines from high fuel costs.
The Central Government "on being satisfied that it is necessary for the public interest" took the decision to reduce the excise duty on aviation turbine fuel (ATF) to 11 per cent, a notification by the Revenue Department of Ministry of Finance said.
"This notification shall come into force with effect from the 11th day of October 2018," it said.
The move will provide relief to airlines who are facing high fuel costs and falling rupee. It assumes significance as ATF costs constitute 35-40 per cent of the total operating cost of an airline in India.
The government on September 26 had raised import duty on ATF to five per cent from zero per cent, along with duty hikes in 18 other items, to cut current account deficit.
The excise duty on ATF was raised to 14 per cent from 8 per cent in March 2014 when Brent crude oil prices had fallen to $36 a barrel. However, with oil prices hovering above $83 a barrel, several airlines posted losses in the first quarter this fiscal.
(With inputs from agencies.)
ALSO READ
Government to sell Pakistan International Airlines majority shares
An engine on a Southwest Airlines jet caught fire before taking off from Texas. FAA is investigating
An engine cover on a Southwest Airlines plane rips off, forcing the flight to return to Denver
Vistara scaling back operations by 10 pc, expects to reach stablity in operation, says airlines
Airlines seek FAA extension of New York minimum flight requirements cuts -- letter