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Sales tax on aviation fuel may be reduced: CM
August, 30th 2008

Airlines facing the heat due to rising crude oil prices may get some relief. The Maharashtra government will consider reducing 32% sales tax on aviation fuel. This assurance was given by chief minister Vilasrao Deshmukh to a delegation of Indian Airlines ' Federation during a meeting at Mantralaya recently.

Speaking at the meeting, head of Kingfisher Airlines, Vijay Mallya, said that when oil prices hovered around $40 a barrel, the state charged airlines 32% sales tax. "Today, the price is $130 per barrel, but the tax remains the same,'' Mallya said.

Reacting to the delegation's demand, a release issued by Deshmukh's office said, "To reduce the financial burden of airlines, the state government would think of reducing the sales tax levied on fuel prices.''

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