(a) the norms laid down for fixing the price of Aviation Turbine Fuel (ATF) and the average
percentage of amount recovered by the Union and State Governments in the form of tax levied
on the price of ATF during the last three years; and
(b) the names of the States levying the minimum and the maximum per cent of taxes?
MINISTER OF THE STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI JITIN PRASADA)
(a): Government does not control the price of Aviation Turbine Fuel (ATF), as it is a
de-regulated product. The methodology adopted in fixing the price of ATF by the Public
Sector Oil Marketing Companies (OMCs) is based on the ex-refinery price of Jet Fuel
which is linked to the Import Parity Price. From 15th November, 2008 onwards, the
ATF prices are being revised by the OMCs every fortnight.
The rates of Basic Excise Duty (BED) plus Education Cess on BED levied by the Union Government
on ATF are 8% and 3% respectively. Sales Tax, imposed by the State Governments, varies from
State to State.
The details of percentage of Central and State taxes in the price build-up of ATF applicable
in different States as in November, 2007, November, 2008 and November, 2009 are annexed.
(b): As per the available information, Rajasthan and Andhra Pradesh have the minimum
percentage of Sales Tax of 4% and Gujarat has the maximum percentage of Sales Tax of 30%.