Thursday, August 18, 2022

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 This exemption was seen as being withdrawn when the July 1 notification directing an export duty on ATF along with petrol and diesel was issued.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.

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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.

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