Airlines industry hints at reducing service

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Mumbai, June 14, 2008: The heat of rising inflation could be felt as airlines industry have now said that if the state governments did not listen to to their demand of reduction in sales tax, it will reduce the service and connectivity.

Sales taxes are fixed by states without reference to the central government, and Aviation Turbine Fuel or ATF is taxed by between 4-28 percent across the country.

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