The cost of ATF or jet fuel in India is one of the highest in the world.
A senior official said on Friday that the Ministry of Civil Aviation is working on the demand to bring Aviation Turbine Fuel (ATF) to bring the aviation industry under the purview of GST.
Addressing a virtual incident on the global aviation and air cargo sector, Civil Aviation Secretary Pradeep Singh Kharola also said that the ministry has taken specific steps for optimum utilization of the country’s vast airspace, which will help international airlines with India. -Will help protect domestic carriers as well.
The cost of ATF or jet fuel, which accounts for 45–55% of the airline’s operating expenses in India, is the highest in the world and the industry has long been demanding that it be brought under the Goods and Services Tax (GST). Governance.
“We are working (on bringing ATF under GST) and the matter has been taken up with the Ministry of Finance … It has to go to the GST Council. We are striving for it,” Mr. Kharol said.
In an event organized by industry body PHDCC, he also mentioned the steps taken for optimum utilization of the country’s airspace. As a result of these measures, both cargo and passenger airlines will be able to optimize distance flow and save costs, he said.
“We have seen that a large part of the economic sectors faced great difficulty and the same was true for aviation. But I can say the least for Indian aviation, it faced a lot of difficulties but it survived. Gaya. And the major contributor was air freight. And freight, “Mr. Kharola said.
According to him, this reflects the huge potential of air cargo not only domestically but also internationally.
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