India to supply Aviation Turbine Fuel to small aircraft operators at international prices - Brief Article

Airline Industry Information, Jan 21, 2000

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

The Indian government has taken steps to ease the burden of rising jet fuel prices on small operators by deciding to provide Aviation Turbine Fuel (ATF) to smaller turbo-prop aircraft at international prices.

The Petroleum Ministry will be issuing instructions in the near future and the move will reduce sales tax from 34% to 4% or less by declaring ATF as `goods` under the Central Sales Tax Act 1956.

It is hoped that the reduction in prices will lead to smaller carriers becoming more viable as well as opening up new links, particularly to remote and short distance destinations.

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