The Federation of Indian Airlines (FIA) urges the Union government to reduce taxes on aviation turbine fuel (ATF) by setting the Goods and Services Tax (GST) rate at 5% and allowing full input tax credit for airlines. FIA’s proposal also calls for eliminating or removing existing excise duties and State Value Added Tax (VAT) levies on jet fuel. The federation argues that lowering the overall tax burden on ATF would reduce airline operating costs and help improve ticket affordability for passengers. FIA positions the move as a way to make costs more predictable and less dependent on multiple overlapping taxes across central and state levels. The proposal is aimed at encouraging a more uniform tax regime for jet fuel, with the additional benefit that full tax credits would reduce the impact of taxes already paid in the supply chain. The article frames the request as a policy change that could benefit the aviation sector broadly by lowering expenses tied specifically to fuel, which is a major cost component for airlines.
FIA urges India to cut jet fuel GST to 5% with full input tax credit
The Federation of Indian Airlines (FIA) urges the Union government to reduce taxes on aviation turbine fuel (ATF) by setting the Goods and Services Tax (GST) rate at 5% and allowing full input tax cre...
- FIA asks the Centre to set GST on aviation turbine fuel (ATF) at 5%.
- FIA requests full input tax credit for airlines on GST paid for ATF.
- FIA urges removal of excise duty and State VAT levies on jet fuel.
- FIA says the proposal would lower airline costs and improve affordability.
- The request targets a reduction in taxes specifically affecting ATF.
FIA urges Centre to scrap excise, State VAT on jet fuel, says move could lower airline costs and improve affordability
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