Financial Daily from THE HINDU group of publications Saturday, Nov 20, 2004 |
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Airlines Industry & Economy - Taxation Centre to take up ATF tax issue with States Our Bureau
New Delhi , Nov. 19 IN an effort to accommodate more passengers from Jammu and Kashmir, the Haj quota has been increased to 82,000 from the earlier 72,000 and Saudi Arabian Airlines has been requested to provide more seats for Haj pilgrims, the Minister for Civil Aviation, Mr Praful Patel, said here on Thursday. Addressing the first meeting of the newly constituted Consultative Committee of Parliament attached to his Ministry, Mr Patel also promised to take up with the Finance Minister the issue of high sales tax levied by various States on aviation turbine fuel (ATF). Emphasising on the need for making air travel more affordable, Mr Patel said that among the main causes for the slow growth in the sector were inadequate infrastructure and the high cost of ATF. The Minister also indicated that the low-cost airline of Air India - Air India Express - would soon start operating from points in South India and cover other parts in a phased manner. The launch of the low-cost airlines will benefit passengers bound for the Gulf region, he said. The new airline is to charge 30 per cent less than the regular fares. On the steps being taken to help passengers, Mr Patel said that the Ministry had prepared a plan for the upgrade of non-metro airports to have international standard facilities. In addition, call centres with toll-free numbers would also be opened across the country shortly.
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