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AKLDELNonstop
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Joined: 19 Dec 2006
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Location: Auckland
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 Posted: Mon Apr 09, 2007 3:48 pm Post subject: Why is fuel tax so high in India? |
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Just saw the last episode of TakeOff on BBC. It was said that the fuel tax in India is 50% the cost of the fuel or 22% the entire cost of the airline. Lord Kaul noted that if the fuel tax was brought down to international levels most airlines in India would return to profitability overnight.
Why is fuel tax in India so insanely high. I can understand landing charges being high due to capacity constraints but fuel tax? Is there any method to this or is it another case of our politicians being themselves?
Cheers
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the_380
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Location: Mumbai, India
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| Posted: Mon Apr 09, 2007 3:59 pm Post subject: |
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Somewht got to do with compensating taxes on other things. like for example: Petrol is much more expensive than diseal...so is kersone cheaper than LPG...in terms of taxes point of view...reason votebank... this point was raised by some person in a TV talkshow (he was some businessman) and then the ministers were abusing him till i could hear censored beeps.
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himmat01
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Posts: 1392
Location: DEL
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| Posted: Mon Apr 09, 2007 4:00 pm Post subject: Re: Why is fuel tax so high in India? |
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| AKLDELNonstop wrote: | Just saw the last episode of TakeOff on BBC. It was said that the fuel tax in India is 50% the cost of the fuel or 22% the entire cost of the airline. Lord Kaul noted that if the fuel tax was brought down to international levels most airlines in India would return to profitability overnight.
Why is fuel tax in India so insanely high. I can understand landing charges being high due to capacity constraints but fuel tax? Is there any method to this or is it another case of our politicians being themselves?
Cheers |
The state govts. feel that they can squeeze the maximum out of airlines by heavily taxing ATF.
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AKLDELNonstop
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Location: Auckland
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| Posted: Mon Apr 09, 2007 4:01 pm Post subject: Re: Why is fuel tax so high in India? |
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| himmat01 wrote: | | The state govts. feel that they can squeeze the maximum out of airlines by heavily taxing ATF. |
Dont they realise that they are far better off having profitable airlines plying the skies as opposed to airlines folding up and bringing the ocuntry back to a monopoly or duopoly in this sector.
Cheers
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himmat01
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Location: DEL
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| Posted: Mon Apr 09, 2007 4:07 pm Post subject: Re: Why is fuel tax so high in India? |
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| AKLDELNonstop wrote: |
Dont they realise that they are far better off having profitable airlines plying the skies as opposed to airlines folding up and bringing the ocuntry back to a monopoly or duopoly in this sector.
Cheers |
Our netas are incapable of thinking that way. Both the central and the state governments have been very short sighted in their taxation policy. Do you know that at one point of time the highest tax slab was 93%.
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AKLDELNonstop
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Posts: 1066
Location: Auckland
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| Posted: Mon Apr 09, 2007 4:09 pm Post subject: Re: Why is fuel tax so high in India? |
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| himmat01 wrote: |
Our netas are incapable of thinking that way. Both the central and the state governments have been very short sighted in their taxation policy. Do you know that at one point of time the highest tax slab was 93%. |
I think thats the time we decided to leave India  .
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shivendrashukla
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Joined: 21 Dec 2006
Posts: 1354
Location: Mumbai, India
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| Posted: Mon Apr 09, 2007 4:19 pm Post subject: |
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According to me the reason is the subsidies provided by the government. To make kerosene cheap they extract the loss that they have incurred through other sources, usually taxing luxouries. Unfortunately in India, flying is a luxury and not a mode of travel. The government has to change it's mindset and treat Aviation as an Industry and not a Rich people thing.
Cheers
shivendra |
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HAWK21M
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Joined: 19 Dec 2006
Posts: 8132
Location: Mumbai, INDIA
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| Posted: Thu Apr 12, 2007 10:12 am Post subject: Re: Why is fuel tax so high in India? |
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| AKLDELNonstop wrote: | Just saw the last episode of TakeOff on BBC. It was said that the fuel tax in India is 50% the cost of the fuel or 22% the entire cost of the airline. Lord Kaul noted that if the fuel tax was brought down to international levels most airlines in India would return to profitability overnight.
Why is fuel tax in India so insanely high. I can understand landing charges being high due to capacity constraints but fuel tax? Is there any method to this or is it another case of our politicians being themselves?
Cheers |
If ATF was cheap out here.Kerosene would not have been subsidised for the common man.
The GOI can reduce charges on Parking & Navigation that would help to.
Although ATF prices cause the biges wedge to profits.
regds
MEL
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Birendra
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Joined: 15 Feb 2007
Posts: 1411
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| Posted: Thu Apr 12, 2007 11:07 am Post subject: |
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How much for a litre of ATF in Bombay & Delhi.
What is the capacity of an aeroplane.
How much ATF is required for a Bombay - Delhi flight.
Like we pay the petrol pump attendant when we fill our bikes with petrol, does the pilot too do the same.
What companies dispense ATF in Bombay & Delhi.
What actually constitutes in the ingredients of ATF since it seems to be one of the major factors in airline profits! |
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HAWK21M
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Joined: 19 Dec 2006
Posts: 8132
Location: Mumbai, INDIA
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| Posted: Thu Apr 12, 2007 2:04 pm Post subject: |
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ATF is provided in BOM by Indian Oil Corporation [IOC],Hindustan Petroelum [HP] & Bharat Petroleum [BP]
Airlines have a limited credit with the Refuelling Agency.
Payement is settled thereafter.After refuelling of an Aircraft Mx collects a Refuelling receipt with details.
ATF is Highly purified Kerosene thats treated to prevent freezing at High Altitudes.
regds
MEL
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the_380
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Location: Mumbai, India
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Birendra
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Joined: 15 Feb 2007
Posts: 1411
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| Posted: Fri Apr 13, 2007 11:26 am Post subject: |
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@A380
I am not at all of the level of the matter suggested here. The information given is for brain ppl. I was always a 45% in school. Bt am happy that u have research level people who contribute here.
BTW who is this JumboJet, and why is he not so regular in posting. His info is too good. 
@Hawk21M
Thank you too for the info.
Some more questions remain to be answered  |
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HAWK21M
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Posts: 8132
Location: Mumbai, INDIA
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| Posted: Fri Apr 13, 2007 9:02 pm Post subject: |
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| Birendra wrote: |
who is this JumboJet, and why is he not so regular in posting. His info is too good. [/u]
@Hawk21M
Thank you too for the info.
Some more questions remain to be answered |
Jumbojet is a member who occupation involves Fuels.
regds
MEL
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JumboJet
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Joined: 20 Dec 2006
Posts: 492
Location: Mind Over Matter
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| Posted: Mon Apr 16, 2007 3:30 pm Post subject: |
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@Mel.
Honourable Sir, Thank you for your acknowledgement.
@A380
Thank you for suggesting my post.
@Birendra
Email me if you have any queries on Jet A and Jet A-1.
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Birendra
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Joined: 15 Feb 2007
Posts: 1411
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| Posted: Mon Apr 16, 2007 7:36 pm Post subject: |
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I will email you as i have a host or should i say plethora of questions.....
Thank you for your encouragement. |
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