NEW DELHI: Flying out of the capital might become costlier marginally with the Delhi government effecting a five per cent hike in VAT on aviation turbine fuel. The government has made an upward revision in the VAT on jet fuel to 25% from 20% from November 16, according to a notification.
“We are assessing the impact of the hike. At present, airfares remain the same and they have not been increased. A final call on passing on this hike to the end-consumer will be taken in due course,” said a senior executive with an airline.
Meanwhile, the government’s move to levy higher VAT on jet fuel has come under severe criticism from the civil aviation minister, Ashok Gajapathi Raju, who termed it as a step which would be like “taxing an economic activity to death”. “Taxes are a reality, but taxing an economic activity to death (is not correct),” Raju said.
Ref : http://timesofindia.indiatimes.com/business/india-business/Govt-ups-VAT-on-aviation-turbine-fuel/articleshow/49866989.cms