New Excise Duty on ATF Cleared, Key Policy Update | Pankaj Chaudhary

In a key development, Pankaj Chaudhary moved a resolution in the Lok Sabha to impose a Special Additional Excise Duty of ₹50 per litre on Aviation Turbine Fuel (ATF). The proposal, under the Central Excise Act, 1944 and Finance Act, 2002, seeks to amend the existing framework and bring ATF under higher taxation. This move is likely to increase operational costs for airlines, which may eventually reflect in ticket prices for passengers. With fuel being a major cost component in aviation, the decision could have a broader impact on the sector’s profitability and travel affordability in India.

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