Question : PURCHASE OF AIR TURBINE FUEL



(a) whether the Government are formulating any scheme to waive off the sales tax from Indian Airlines so as to reprieve it from the situation of deficit; and

(b) if so, the time by which this scheme is likely to be implemented?

Answer given by the minister

THE MINISTER OF CIVIL AVIATION (SHRI SHARAD YADAV)

(a) and (b): No, Sir. However, with a view to encourage small aircraft (Turbo-prop) operations to connect small and non-metro cities, in January, 2000 it has been decided to provide Aviation Turbine Fuel (ATF) to such aircraft at international prices and notify such ATF as `declared good` under the Central Sales Tax Act, 1956 for capping levy of sales tax at 4%. The modalities of implementing these decisions are under examination.