Mallya wants Maharashtra to cut sales tax on aviation fuel
August, 27th 2008
Kingfisher Airlines on Tuesday made a strong case for reducing sales tax on aviation fuel in Maharashtra to help the aviation industry hit hard by higher fuel costs.
The plea was made by Kingfisher Airlines chief Vijay Mallya, during a meeting with Chief Minister Vilasrao Deshmukh here.
"The government should reduce sales tax on aviation fuel as it is causing losses to airlines," Mallya said.
"When the fuel price was 40 dollars per barrel, the sales tax rate on it in Maharashtra was 32 per cent. Now, when the price is 130 dollars per barrel, sales tax is levied at the same rate," Mallya said at the meeting, convened by Deshmukh to discuss improvement of air connectivity in the state.
"Reducing sales tax on aviation fuel is essential if airlines are to take the initiative to increase air traffic in Maharashtra," Mallya said, adding Andhra Pradesh and Kerala have taken steps to cut Sales Tax on the aviation fuel.
He also highlighted the need for 'wildlife management on airports', for controlling animals straying on the runway. The garbage dumped at airports attract birds and leads to disruption in air traffic, an official release quoted Mallya.