Aviation Ministry asks states to reduce ATF taxes

The Ministry for Civil Aviation on Tuesday asked states across the country to reduce the taxes levied on air turbine fuel (ATF) to reduce operational costs for airlines.

"ATF is a high-taxed commodity and is a major factor in determining the air fare. Some states have already reduced it and if others follow, it will make domestic travel affordable," Union Minister for Civil Aviation Ashok Gajapati Raju told media persons here.

However, Raju declined to comment about private carrier Spicejet, which is currently undergoing financial turmoil. However, he stated that the Centre is willing to help out airlines.

According to reports, the Centre is ready with a new aviation policy to develop aviation infrastructure and to attract investments.

The new policy reportedly aims to maintain a competitive civil aviation environment which ensures safety and security in accordance with international standards, promotes efficient, cost-effective and orderly growth of air transport and contributes to social and economic development of the country.