Finaly there is some good news for the hi-fliers (people who fly often). The cost of flying is likely to get cheaper provided the airlines operator pass the benefit to the consumers.

The civil aviation ministry has moved a Cabinet note on civil aviation policy in which it proposed, among other things, shifting aviation turbine fuel (ATF) to the declared goods category. The ministry believes that the proposed status would reduce the sales tax incidence on the fuel, which is currently as high as 39% in some states, and thereby bring down the cost of airline operations. Under the Central Sales Tax (CST) Act, a declared good will not attract sales tax at more than 4%.

I sincerely hope that this move of the civil aviation ministry is passed by the cabinet as it would benefit one and all. Further this would also be good for the overall growth of this indistry.

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