Bringing ATF under GST would reduce 40% of the operating cost: Vandana Aggarwal, MoCA

In order to reduce the logistics cost of air carriage, Vandana Aggarwal, Sr Economic Advisor, Ministry of Civil aviation (MoCA), requested Nitin Gadkari, Minister of Road Transport, Highways and MSME, at the webinar held by Domestic Air Cargo Agents Association of India (DACAAI), to recommend to bring air turbine fuel (ATF) under the ambit of the goods and services tax (GST). She informs fuel accounts for 40 per cent cost of aircraft operation. Bringing fuel in the GST regime will reduce the logistics cost of air carriage considerably.
MoCA has facilitated the cargo operators in addressing the inter-ministerial issues. “MoCA had also operationalised Air Cargo Community System (ACCS) for all stakeholders to get them into paperless mode which will also reduce costs,” she adds.