INDIA — The aviation ministry is renewing its efforts to get jet fuel included in the country’s national Goods and Sales Tax (GST) in a bid to shield Indian airlines from sharply rising oil prices, and protect consumers from higher air fares. Jet prices have risen 40% since the start of last year, with gains on international markets compounded by the falling value of India’s rupee against the dollar and myriad local sales taxes which vary from 4% to 30%. Civil Aviation Secretary Rajiv Nayan Choubey was due to meet his Treasury counterpart last week to appeal for equal treatment with India’s marine bunker oil industry. Inclusion in the GST could save airlines an estimated 30 billion-50 billion rupees ($730 million) per year. GST rules would allow them to claim “input” tax credits against jet fuel after paying “output” taxes on air tickets. India’s jet demand is booming as the aviation industry expands to meet the needs of the country’s growing middle class (JFI May21’18).
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