On the question of making aviation fuel a “declared goods” — that is, a good considered a “public utility raw material” — and therefore subject to lower excise, Chidambaram said the finance ministry was willing to introduce a Bill in Parliament if the petroleum minister could muster enough political support.
If ATF is classified as ‘declared goods’, it would attract a uniform tax across all states. At present, the fuel attracts sales tax ranging between 4 per cent and 24 per cent. Private airlines like Jet Airways and Kingfisher Airlines are demanding a uniform tax rate on the fuel, which accounts for nearly 40 per cent of their total cost, to bring down their losses and help them reduce passenger fares.
