Thursday, December 19, 2024

No ATF excise duty for Indian carriers flying overseas

This will enable domestic carriers to be  at par with international airlines. However, domestic airlines will continue to pay an 11 per cent excise duty on ATF used for flying within the country

PTAVASISAMWAD.COM

India has taken a salutary step by exempting those domestic airlines that fly overseas from paying excise duty on Aviation Turbine Fuel (ATF). This will enable domestic carriers to be  at par with international airlines. However, domestic airlines will continue to pay an 11 per cent excise duty on ATF used for flying within the country, reported PTI.

The finance ministry’s clarification that excise duty would not be applicable on domestic carriers for foreign flights has brought them back to be at par with foreign airlines for which the fuel was exempt from duty as per the Chicago convention

A July 7 notice from the Finance Ministry pointed out that the exemption from both basic excise duty and special additional excise duty would be applicable retrospectively from July 1. Domestic carriers flying abroad before the notification did not have to pay excise duty on ATF purchased from oil marketing companies. This exemption was seen as being withdrawn when the July 1 notification directing an export duty on ATF along with petrol and diesel was issued.

Following this, the aviation industry pointed out to the government that oil companies were not giving the excise exemption to them since July 1.

The finance ministry’s clarification that excise duty would not be applicable on domestic carriers for foreign flights has brought them back to be at par with foreign airlines for which the fuel was exempt from duty as per the Chicago convention.

******************************************************

Readers

These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.

Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world.  We have taken the small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.

Please help us to keep our journalism independent and free.

In these difficult times, to run a news website requires finances. While every contribution, big or small, will makes a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.

For more information: pravasisamwad00@gmail.com

Roma Ghosh
Roma Ghosh
Roma Ghosh has recently retired as Associate Professor for Media Studies from an international university. She was with the Times of India as a correspondent for many years. Her passion is cooking and she has been doing recipes and photo shoots for Women's Era for the last 15-odd years.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

EDITOR'S CHOICE