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Aviation woes: Praful Patel to brief Cabinet

Last Updated: Thursday, August 13, 2009 - 11:30

Zeenews Bureau

New Delhi: Civil Aviation Minister Praful Patel is expected to make a detailed presentation on the problems of the civil aviation sector in a Cabinet meeting on Thursday.

The aviation industry hit hard by the global recession is expecting a loss of about Rs 10,000 crore or USD 2 billion in 2008-09.

Major players of the industry have even threatened to go on strike on August 18 but later retracted from their position under government and public pressure.

While pointing at high taxes and ATF prices, the sector has been demanding the government to take steps to reduce the burden of the high price of Aviation Turbine Fuel (ATF).

Ironically, the base price of ATF is higher in India than that in other parts of the world by as much as 40 percent.

The industry stalwarts have demanded the government to bring ATF prices under declared goods category in order to a uniform tax of four percent across the country.

The industry estimates that if ATF were to attract a uniform sales tax rate throughout the country, then in 2008-09, it would have provided a relief of about Rs 3,200 crore to the industry.

First Published: Thursday, August 13, 2009 - 11:30

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