Excise duty on Jet fuel.
Excise Duty on Jet Fuel has been reduced by the government. Aviation industry appears to be happy. It came at a time when elections in states are due.
The government has finally reduced excise duty on jet fuel to 11 per cent with effect from October 11. It did so at the time of upcoming state elections.
The aviation industry that has been brutally hit hard by rising fuel prices and plummeting rupee heaved a sigh of relief.
Jet fuel prices this month hit their highest level since January 2014 as rising international oil prices and a weak rupee further pushed the rates up.
The fuel in Delhi currently costs Rs 74.56 per litre and in Mumbai, it is priced at Rs 74.17 per litre.
ATF prices have been increasing since July 2017 and has risen by 58.6 per cent since then.
The government had in 2016 hiked excise duty on ATF to 14 per cent from 8 per cent. The central government currently charges 14 per cent excise duty on ATF. On top of this, states charge up to 30 per cent sales tax or VAT – Odisha and Chhattisgarh have 5 per cent VAT while Tamil Nadu taxes ATF at 29 per cent, Maharashtra and Delhi at 25 per cent and Karnataka at 28 per cent.
(Read More: Blunder, Thy name is Budget 2016)
Share prices of aviation stocks shall see a bullish trend.
The ruling party hopes to gain electoral benefits.
The Aviation industry seems to be happy
Thought for the Day.
But, will this move of the Government recover any losses already made?
Has it not come very late? Is it not very little?
Why do the Governments wait for elections to claim credit?
It is its poor people who always have to bear the brunt. Why is this so?
When the GST was introduced on July 1, 2017, five commodities — crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) — were kept out of its purview.
The aviation industry led by Ajay Singh of Spicejet has been raising its concerns over rising international oil prices and asked the government to take up some policy measures to help the industry by lowering taxes to help offset the impact of high oil prices.
The government had to also consider seeking approval of the Election Commission as the model code of conduct came into force after announcement of elections announced.