 "ATF, Jet fuel prices")
As crude oil prices continue to soar, IndiGo's full-time Director and Chief Executive Officer Ronojoy Dutta on Wednesday urged the Central government to bring the Aviation Turbine Fuel (ATF) under goods and service tax (GST) ambit for the benefit of the aviation sector as well as customers.
Dutta in an official statement said, "We are in talks with the government to bring ATF under GST as it brings the benefit of the input tax credit. We believe that such measures are needed now more than ever to offset the increase in cost and make flying viable for airlines and affordable for consumers."
He further said, "Over the past few weeks, crude oil prices have soared to a seven-year high nearing USD 140 per barrel, due to the ongoing conflict in Europe. This has resulted in over 50 per cent ATF price hike from January 2022 till date, including the 18 per cent hike on Wednesday."
"ATF constitutes over 45 per cent of the operational cost of the airline, hence this situation will have an adverse effect on us," said Dutta.
"A rationalization of taxes will result in high growth for the sector, creating a multiplier effect throughout the economy, promoting trade, tourism, and job creation," he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
