New Delhi, Dec 10 (UNI) Civil Aviation Minister Praful Patel today said the aviation turbine fuel (ATF) prices issue should be resolved immediately for the growth of the aviation sector and the country's economic development.
''The ATF prices should be rationalised in terms of base price, central levy and sales tax,'' he told a press conference on the occasion of the Aviation Safety Week.
Mr Patel said he had requested Finance Minister P Chidambaram, Petroleum Minister Murli Deora and the oil companies and PSUs not to increase the ATF price.
He said he had also requested the state governments to reduce sales tax on ATF.
''This may be a good money spinner in the short-run, but would prove negative in the long-run.... The levy of as much as 32 per cent sales tax on the ATF by the state governments is not a healthy trend, and not good either for the State or the aviation sector.'' He said there was no question of the airlines doing well unless the ATF prices issues was resolved.
''It is a serious issue that has to be resolved meaningfully,'' he added.