The aviation sector is facing tough times globally, thanks to high crude oil prices, Vijay Mallya, chairman, Kingfisher Airlines told CNBC-TV18 while sharing views on the ailing sector.
Not only do the Indian airliners buy jet fuel at the highest rate available, but they also pay an ad valorem tax to the state governments. Mallya finds this terribly unfair and feels that states are making windfall gains at the cost of airlines. Mallya has been lobbying with the government for rationalising aviation turbine fuel (ATF) cost, feels that if airplanes weighing under 40 tonne enjoy a 4% sales tax on fuel, why can't bigger aircraft also be given that benefit. In an attempt to reduce cost, KAF has applied to the directorate general of foreign trade (DGFT) to import aviation turbine fuel (ATF) directly. "We would use the infrastructure of one of the oil marketing company (OMC) and pay them a service fee for handling the fuel being imported. That gives us a direct use status and saves sales tax," he explained. Below is the edited transcript of MallyaDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
