The airline industry calls for rationalization of ATF taxes, read the news here!
Indian domestic airlines are calling for the rationalization of aviation fuel taxes to limit the huge increase in fuel prices.
On Wednesday, high oil prices led OMC to raise the price of ATF to more than 1 lakh Rs per kilolitre.Also, in the state capital, the price of aviation fuel also increased. That is by 18.32 percent to 1 10,666.29 Rs per kilolitre (kl) from 93,530.66 Rs per kl.
The rise came as oil prices remained high due to the crises in Russia and Ukraine. Fuel retailers are now changing the price of aviation fuel every two weeks.
Moreover, over the past few weeks, oil prices have risen to a seven-year high of almost $ 140 a barrel due to the ongoing conflict in Europe.
Though, this has led to more than a 50 percent increase in ATF prices from January 2022 to the present, including today’s 18 percent increase, said Ronojoy Dutta, IndiGo’s full-time CEO.
This situation is harmful to us because ATF accounts for more than 45 percent of our operating costs.
We are talking to the government to subordinate ATF to GST, because it brings the benefit of an input tax rebate.
In addition, such measures are now in need more than ever as to offset this increase in costs and make flying more affordable and cheaper for consumers.
In India, the local ATF price derives from the international gasoline price. Which, expressed in US dollars, so ATF prices can easily governed by exchange rate movements.
Also, It is noteworthy that the rupee has also recently seen a decline against the US dollar. This further reflects the prices.
ATF prices are now more expensive than international standards due to the high tax rate.
The industry required that the fuel class be subject to GST, similar to the ‘Bunker Diesel’ status.
Also, A Vistara spokesman said: “The resumption of planned international trips on March 27 is expected to boost demand and we hope this will help the industry cope with the rise in ATF prices.”
So this was all about it the news on the airline industry calls for rationalization of ATF taxes.
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