Govt.To Hike 6% Excise Duty On ATF To Make Air Travel -Expensive

[New Delhi]Govt. Proposing a Hike 6% Excise Duty On ATF To Make Air Travel -Expensive
The excise duty on ATF is to be hiked to 14 per cent from 8 per cent, according to a proposal in Union Budget 2016-17.
The increase would be virtually applicable to airlines operating from all airports since the proposal for SCAs and the regional connectivity scheme are yet to be implemented.
The Civil Aviation Ministry has mooted the idea of SCAs and regional connectivity in the draft aviation policy which has not been finalised yet.
“Excise duty on ATF, other than for supply to Scheduled Commuter Airlines (SCA) from the Regional Connectivity Scheme Airports, (is) being increased.
“ATF for supply to aircrafts under the Regional Connectivity Scheme will continue to attract 8 per cent excise duty,” Finance Minister Arun Jaitley said while presenting the Budget.
Interestingly, the hike in excise duty also comes at a time when airlines have been seeking lower levy on jet fuel, which accounts for more than 40 pr cent of their total operating expenses.