Thaindian News

Bangalore, Sep 19 (IANS) Union Civil Aviation Minister Vayalar Ravi Monday urged states across the country to waive extra sales tax on aviation turbine fuel to minimise the impact of the recent price hike on airlines.

“I urge the states to waive extra sales tax on aviation fuel as Kerala did by not increasing it in commensurate with the fuel hike by oil marketing firms. Otherwise, air travel becomes costlier and passengers face hardship,” Ravi said at a civil aviation conference here.

Following a sharp depreciation of the rupee against dollar, state-run oil marketing firms September 15 increased jet fuel price 2.5 percent to Rs.58.45 per litre from Rs.56.97, forcing private airlines like Jet Airways to pass the burden on hapless passengers by increasing air fares Rs.200-300 per ticket on domestic routes.

“I regret to say no other state has followed Kerala in giving relief to the civil aviation industry. I appeal to them (states), irrespective of which party is in power, to lower taxes on turbine fuel,” Ravi said.

Noting that air travel was no longer a luxury but a necessity for many, especially for business and personal travel and cargo movement, Ravi said volatile crude prices were alarming to the Indian economy and growth sectors, as frequent increase in fuel prices would reduce affordability.

“With over 80 percent of crude imports, India is at the mercy of the oil producing countries. In the absence of enough fuel production or resources, we depend heavily on imports to sustain the high growth rate despite volatile crude prices,” Ravi said while inaugurating the regional celebration of the “Centenary of Civil Aviation” here.

Blaming international politics for high crude prices, Ravi lamented that developing countries like India were suffering for being over-dependent on fuel imports in the absence of alternative fuels or technology for transportation and industrial use.

“Capitalist or western countries don’t get impacted as we do when crude prices go up frequently for various factors. With crude imports accounting for major forex (foreign exchange) outgo, forex reserves are dipping despite higher remittances, especially from non-resident Indians in the Gulf region,” Ravi asserted.

The minister also expressed concern that exports were unable to match imports, leading widening trade and current account deficit.

Assuring the civil aviation industry of government support in sustaining its current growth rate, Ravi said his ministry would allow the private sector in building and operating airports provided interested firms first acquire land before applying to the ministry for clearance.

“Land acquisition is a major issue. It needs to be addressed fairly and ensure justice to all stakeholders. As part of basic infrastructure, airports and airstrips in cities and towns will increase air connectivity and improve the economy,” Ravi noted.