India cuts aviation turbine fuel tax to 11%

The Indian govt has reduced ATF taxes by 3 percentage points to 11%, effective Oct 11. The announcement was made Wednesday in a notification by the ministry of finance's revenue department. New Delhi explains the reduction in taxes "is necessary in the public interest to do so". High fuel prices have been the bane of Indian airlines, with the recent quarterly results by 3 carriers (Indigo, SpicejJet, and Jet Airways) showing large declines in its earnings. The move will be is expected to be welcomed by the industry, which has long lobbied for reduced taxes on ATF. <br/>