Appearing to take a dig at the Delhi government over its decision to levy higher tax on jet fuel, civil aviation minister Ashok Gajapathi Raju on Friday said such a move would be like “taxing an econo
Appearing to take a dig at the Delhi government over its decision to levy higher tax on jet fuel, civil aviation minister Ashok Gajapathi Raju on Friday said such a move would be like “taxing an economic activity to death”, according to news agency reports.
ATF expenses make up about 45 per cent of the overall operational costs incurred by airlines.“Taxes are a reality, but taxing an economic activity to death, probably India shows the way in that... We need to come out of that scenario and go forward”, Mr Raju was quoted by PTI, as saying.
When asked about Mr Raju’s comments, a Delhi government official reportedly said even after hiking the VAT on ATF to 25 per cent from 20 per cent, the rate is still among the lowest.
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