Manufacturing Industry

Senator proposes fuel tax relief for airlines

Airline Industry Information, Sept 7, 2005

US airlines could be given a fuel tax break, according to several US senators.

Senator Ted Stevens, an Alaska Republican and Commerce Committee chairman, has said that his committee does not have jurisdiction over taxes, but would probably recommend the Senate Finance Committee to give airlines a tax break. According to the US Transportation Department, the federal government imposes a USD0.44 per gallon excise tax on jet fuel and tax receipts are received by a federal trust fund towards paying for improvements in airport and air traffic systems, Reuters reported.

The idea is not supported by all, however, as Senator Charles Grassley, an Iowa Republican and chairman of the finance panel, has said that he is not ready to suggest a tax break for airlines after just one week of high fuel prices.

There have been unsuccessful petitions by US airlines to the Bush administration for boosting fuel supplies to lower prices. Although these requests have not been met, the administration and Congress have backed other relief measures since the terrorist attacks in 2001. These measures include loans and temporary fee rollbacks.

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