Date:07/08/2004 URL: http://www.thehindubusinessline.com/2004/08/07/stories/2004080700930500.htm

Back AP increases sales tax on ATF to 30.55 pc

Our Bureau

New Delhi , Aug. 6

ANDHRA Pradesh has raised the sales tax on aviation turbine fuel (ATF) to 30.55 per cent from the earlier lower rate of just 4 per cent.

Interestingly, AP had in April 2002 lowered the sales tax on ATF from 30.55 per cent to 4 per cent. Justifying the move the then State Minister for Commercial Taxes, Mr K. Vijayarama Rao, had said that the huge slashing in percentage point was intended to give a boost to domestic airline operations, traffic and creation of infrastructure for the international airport project in Hyderabad.

Airline sources while stating that Andhra Pradesh had raised the sales tax on ATF in late July said it would be difficult to immediately calculate the financial implications of the State's latest move on the domestic aviation sector.