Indian aviation won't get tax breaks
Thursday, 23 October 2008：It’s looking more and more unlikely that the Indian aviation sector will receive a break on the 30% tax they pay for jet fuel, as the finance ministry expresses its inability to drop taxes.
In recent days the domestic airline sector in India has been hoping to see a drop in taxes on aviation turbine fuel, which in some areas is as high as 30%. This has led to some controversy over unpaid jet fuel bills of public sector oil companies.
This week, both the Indian Aviation Minister Praful Patel and the Indian Petroleum Minister Murli Deora have been in talks to try and sort out the issue.
But now it’s looking like the finance ministry won’t approve a tax reduction, so airlines have now turned to Minster Deora and the hope that the oil ministry will be able to lower base ATF prices.
Meanwhile nearly all of the Indian airlines are expected to meet with aviation ministry officials this week to discuss the nature of their operations as well as divulge the nature of their financial health.