BUDGET - BMR Advisors

Central sales taxDeclared goods status to ATFBasis the earlier discussion on adverse impact of high prices ofATF on the Indian Airline sector, it is expected that that ATFaltogether be given a “declared goods” status, thereby attractinga uniform 4 percent sales tax across India.The Budget of 2007-08 addressed this longstanding Industrydemand only partially by providing “declared goods” to ATF soldto turbo-prop aircrafts in order to promote air linkages to remoteareas benefiting a very small portion of the whole industry. Anoverall “declared goods” status would go a long way in restoringthe financial health of the Indian aviation sector.In this context, it is important to note that the Andhra Pradeshgovernment has already reduced sales tax on ATF from 33percent to 4 percent.indiaBUDGET200847