New Delhi, October 10: In a major relief to air carriers, the Centre on Wednesday slashed the excise duty on aviation turbine fuel from 14 per cent to 11 per cent. The reduction comes in the backdrop of rising crude prices, combined with the plummeting rupee, which has pushed a number of flyers into losses.
Nearly a fortnight before slashing the excise duty, the government on September 26 had increased the custom duty on ATF by 5 per cent. The decision was rigorously opposed by the private carriers' association, calling it a lethal blow on the "already-stressed" aviation sector. Centre Hikes Import Duty on ATF.
Meanwhile, a demand has also been raised by the stakeholders in the sector to include ATF under the Goods and Services Tax (GST) regime, which could ensure a "fair price regulation".
Union Minister of State for Civil Aviation, Jayant Sinha, said the government is currently not mulling over including ATF under the GST ambit. "At present, there is no proposal to include ATF under GST," Sinha had said in the last session of the Parliament.
Senior Aviation Minister Suresh Prabhu had, however, told news agency PTI that bringing turbine fuel under GST could bring down the operational cost by 35-40 per cent approximately.
Notably, the ATF cost has been on the upswing since July last year, spiking by nearly 58.6 per cent since then. The fuel currently costs Rs 74,567 per kilolitre in Mumbai, whereas, it is priced at 74,177 per kl. in Mumbai.