Plan panel for uniform tax on aviation fuel

April 2nd, 2008 - 3:18 pm ICT by admin  


New Delhi, April 2 (IANS) With state governments reluctant to bring down their levies on aviation turbine fuel (ATF), the Planning Commission’s high level group on the services sector Wednesday recommended that the commodity be classified as a declared good, which would facilitate a uniform nationwide tax. The group, headed by Planning Commission member Anwarul Hoda, Wednesday submitted its report on the services sector to Deputy Chairman Montek Singh Ahluwalia.

“The centre should either bring ATF air traffic fuel within the definition of declared goods or the states should be persuaded to adopt the standard VAT rate of 12.5 percent,” the report said.

“The cost of aviation fuel has already risen because of the rise in crude oil prices. The problem is exacerbated by the state governments’ levying sales tax at high rate,” it added.

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