May 31, 2012—As reported in the May 24 edition of The Hindu, Nathan India’s study—Aviation Turbine Fuel in India-Examination of Pricing and Tax Regime Governing ATF—concludes that taxes and fees related to aviation turbine fuel (ATF) are much higher in India than in other countries and should be lowered to improve the health of the country’s aviation industry.
The report recommends lowering taxes on ATF by
Nathan’s analysts favor the second option—the taxation model used in the state of Chhattisgarh, which reduced the local tax rate on ATF to 4 percent and is consequently enjoying both economic growth and higher gross tax revenue. The report also recommended that
The study of ATF pricing and taxes is Nathan India’s second study for the Ministry of Civil Aviation.
Read the article in The Hindu: http://www.thehindu.com/business/Economy/article3452194.ece