Vayalar Ravi, Minister of Civil Aviation, Govt of India has urged the state governments from across the country to reduce sales tax on Aviation Turbine Fuel (ATF) as it has forced airlines to increase airfare. Speaking during the fourth consultation meeting with the representatives of the state governments in Delhi, Ravi said that there was surge in the price of the ATF due to hike in crude oil price in the global market, according to an ANI report.
"The major problem aviation industry is facing in India today or all over the world is the daily increase of the ATF because of the crude price and the sale tax of the states. That is why, I request the states please reduce the sales tax and help us," he added.
Emphasising that it will be unjust to say that during the festive season airlines increase the fares, Ravi said, "Despite facing the heat of hike, the airlines cannot increase the fare beyond a certain limit."
"I will discuss the matter, but whenever the regulations are very flexible. This is a business; airlines are running it as a business, so I don't know whether legally to an extent we have to find out but we have some powers but there is a declared fares, beyond that they cannot go," he stated.
Earlier this month, Ravi blamed international politics for high crude prices and lamented that developing countries like India were suffering for being over-dependent on fuel imports in the absence of alternative fuels or technology for transportation and industrial use.