Patel to take up ATF issue with Chidambaram again

New Delhi, May 9: Civil Aviation Minister Praful Patel today said he will once again take up with Union Finance Minister P Chidambaram the issue of rationalisation of taxes on aviation turbine fuel (ATF).

''ATF prices all over the world are shooting up and the tax structure on it is not conducive for growth of civil aviation industry in India. I'll be meeting the FM again to take up the issue,'' he said.

Mr Patel said he had earlier met the finance minister on the issue and will be meeting him again soon. The increasing cost of ATF may in turn raise the fares of airlines.

''With more and more people travelling by air, we would like to encourage the growth of this industry by addressing the issues of taxes on ATF,'' he said.

ATF comprises nearly one third of an airline's operating costs.

In India, ATF prices are nearly double compared to those in other countries due to high central excise duty and sales tax imposed by various states that ranges between four to 34 per cent.

UNI