Civil aviation ministry seeks cut in excise duty on jet fuel

The civil aviation ministry has sought a reduction in excise duty on aviation turbine fuel (ATF), or jet fuel, to eight per cent from 14 per cent, by rolling back an increase made last year. 

As global crude oil prices fell to below $30 a barrel, government had raised the duty to compensate for its tax loss. “Excise duty was raised when crude prices were low. Now they are inching up and the government can easily cut excise duty, which will also help shield airlines from a hike in jet fuel prices,” said a government official, who did not want to be named. 

Rising fuel cost is a concern for the airline industry, which has started reporting profits after a long spell of losses. A more than 20 per cent increase in air passengers and low fuel prices were the key drivers of the improved performance. 

Other requests include keeping ATF in the GST ambit. Fuel products aren’t included under GST and are set to attract higher taxes than those proposed under the new indirect tax system, reports Economic Times.