The Centre has categorized blended aviation turbine fuel under mineral items, introducing excise duties, and is considering voluntary use by 2024 and mandatory by 2027. The aviation industry is concerned about increased fuel costs and potential need for incentives, with ongoing consultations among various ministries.
New Delhi: The Centre has classified blended aviation turbine fuel as a new category under mineral items in the Central Excise Act, as it weighs the option to make its use voluntary for domestic flights by next year and mandatory by 2027.
This comes even as the aviation industry has expressed apprehensions that blending will raise their fuel cost and that the Centre may have to offer some incentive if it wants the airlines to opt for it on a voluntary basis.
According to a notification issued by the department of revenue, ministry of finance , on Monday, blended aviation turbine fuel drawn by the selected airline operators or cargo operators for regional connectivity scheme flights under Regional Connectivity Scheme (RCS) and Ude Deshka Aam Nagrik (UDAN) scheme will attract 2% excise duty , while all other blended ATFs will be taxed at 11%. Officials from the finance ministry described the move as the "primary step", saying it will take a call after wider consultations with related ministries, including the ministry of civil aviation (MoCA), Niti Aayog and oil marketing companies (OMCs). "This is the primary step and the category has been created; however it is premature to comment on any timeline for making it mandatory," a senior official told ET. Testing of blended petrol is already going on. Finance Financial Literacy i.e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Advanced Java Mastery: Object-Oriented Programming Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Master RESTful APIs with Python and Django REST Framework: Web API Development By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development JavaScript Essentials: Unlock AI-Driven Insights with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Intermediate C++ Skills: Master Pointers, Structures and File Stream By - Metla Sudha Sekhar, IT Specialist and Developer View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital Marketing Masterclass by Neil Patel By - Neil Patel, Co-Founder and Author at Neil Patel Digital Digital Marketing Guru View Program Artificial Intelligence(AI) AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Intermediate Java Mastery: Method, Collections, and Beyond By - Metla Sudha Sekhar, IT Specialist and Developer View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd. View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program HR Human Potential and the Future of Employment By - Lynda Gratton, Prof.
at London Business School, Speaker, Author, Global Thought Leader View Program Marketing Future of Marketing & Branding Masterclass By - Dr. David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding Consultant View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Advanced Excel Course - Financial Calculations & Excel Made Easy By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program In January, the Centre had set an indicative target of 1% for blending sustainable aviation fuel (SAF) with conventional jet fuel for all international flights by 2027, marking a major step towards reducing carbon emission in the aviation sector . This was based on the recommendation of a committee on SAF constituted by the ministry of petroleum and natural gas The committee is said to have submitted its recommendations to the government last year.
SAF, which has a similar chemistry to jet fuel, is considered as a clean substitute for fossil jet fuels.
However, the aviation industry feels that the cost of producing the biofuel is high, which will spike fuel costs of the airlines, who will eventually pass it on to the fliers, the official cited above said.
"The industry has expressed its apprehensions and if introduced at this stage, this will spike the cost of fuel, and so all aspects must be considered before making it mandatory as this is a highly price-sensitive market," an aviation sector executive said on condition of anonymity.
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