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Jaisalmer, December 21, 2024: The GST Council on Saturday, led by Finance Minister Nirmala Sitharaman, has refused the airline industry’s request to include aviation turbine fuel (ATF) in the GST system.
The measure tries to harmonize aviation fuel taxes, but state governments have expressed worries about possible income losses, particularly from major sources like gasoline and diesel.
Airlines, that are dealing with high fuel prices, contended that adding ATF in GST will cut operational expenses while also providing consistent tax rates across the country. The industry has been campaigning for this reform, pointing out that ATF contributes for 40% of airline costs, with state-imposed levies reaching up to 30%.
She remarked, “States were uncomfortable. They didn’t want the ATF because they regarded it as part of the crude petroleum diesel basket, therefore they claimed it couldn’t be removed alone, thus it’s still there today.”
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