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Drunk passenger creates a flutter on SpiceJet flight

MANGALURU

Implementation of a reduced and uniform taxation structure on air turbine fuel (ATF) across all states will bring fuel costs largely in line with global levels and improve financial health and competitiveness of airlines by reducing their operating costs, noted a recently concluded ASSOCHAM-Yes Bank joint study.

“Reduction in ATF costs would spur aviation related activities and have a multiplier effect in terms of job creation and revenue generation in related industries like tourism, trading and manufacturing,” noted the study titled ‘Indian Civil Aviation: At the cusp of taking off,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with Yes Bank, reports The Times of India.

Rationalisation of value added tax (VAT) should be consensual, involving deliberations with respective state governments, suggested the study. “Reduction in VAT on ATF implemented by states like Andhra Pradesh, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha and West Bengal during 2013-14 has shown direct benefits resulting in increased airline activities for that fiscal year, as such it can also be adopted by high consumption centres like Delhi and Mumbai.”

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