Friday, October 31, 2008

Air Traffic or Dog House

Suhel Seth writes in ET “States in India are levying a state sales tax of 25% to 32% on ATF (aviation turbine fuel). But the catch is not just the obscenely high tax. The base rate of the ATF that is being offered by the oil companies is double the international price of fuel at current rates. 

The Airports Authority of India charges the highest for any aircraft related activity. For instance, the landing charges in India are the highest in the world; add to that the infrastructure limitations in terms of runways and you have yet another dangerous situation. Every minute you spend hovering in the air costs a fortune at current ATF rates, but yet again, this is not being factored in”. 

 

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