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Last Updated : Oct 10, 2018 09:10 PM IST | Source: Moneycontrol.com

Government cuts excise on ATF to 11% effective October 11

The measure comes as higher ATF prices and a weaker rupee are troubling airline finances.

The government has announced to cut excise duty on aviation turbine fuel (ATF) from 14 to 11 percent effective October 11. The move, will not only provide relief to airlines, but will keep airfares in check.

The announcement was made by the Revenue Department in a notification on October 10.

The measure comes as higher ATF prices and a weaker rupee are troubling airline finances. Recently, the government cut excise duty on petrol and diesel, in what seemed like a move to appease the masses ahead of the 2019 general elections.

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On 4 October it slashed excise on petrol and diesel by Rs 1.5 per litre and told oil manufacturing companies to absorb Re 1 per litre of costs to provide some relief to consumers as fuel prices were at record highs.

In 2014, excise duty on ATF was raised to 14 percent from 8 percent. This cut to 11 percent will provide substantial relief to airlines.

 
First Published on Oct 10, 2018 09:10 pm
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