Naresh Goyal meets FM, seeks relief on fuel tax
Jet Airways Chairman Naresh Goyal met P Chidambaram to seek tax concessions on aviation turbine fuel as part of measures to overcome the crisis that has hit the civil aviation sector.india Updated: Oct 20, 2008 22:53 IST
Jet Airways Chairman Naresh Goyal on Monday met Finance Minister P Chidambaram to seek tax concessions on aviation turbine fuel as part of measures to overcome the crisis that has hit the Indian civil aviation sector.
According to sources, Goyal met Chidambaram at North Block this morning and drew attention of the finance
minister to the problems that airlines in the country were facing.
Goyal is understood to have asked Chidambaram to consider the demand of airlines to rationalise taxation and levies on ATF, which has become one of the biggest issues of carriers in India. Jet Airways alone had a total outstanding fuel bill of Rs 859 crore, of which it had defaulted on payment of bills which were due on September 25 and October 5.
Similarly, Kingfisher owed Rs 110 crore to IOC of which Rs 60 crore remained unpaid after expiry of the credit period.
National Aviation Company Ltd, the holding company of Air India, has an outstanding of Rs 606 crore as on October 8 and has a monthly fuel bill of Rs 337 crore.
Goyal's meeting with Chidambaram comes days after the former had decided to reinstate 1,900 sacked employees.
Jet and Kingfisher had recently entered into an alliance seeking synergies in operations as they try to cut costs together.
First Published: Oct 20, 2008 22:44 IST