No excise duty on ATF used in Indian carriers' international flights

The government on Friday exempted domestic airlines running international flights from 11% excise duty on jet fuel or aviation turbine fuel (ATF) bought from oil marketing companies. In a notification, the aviation ministry said ATF supplied as fuel to domestic carriers on international routes would continue to be exempted from basic excise duty from July 1.

ET, on July 7, had reported airlines had sought a clarification from the government on the additional levies which would increase cost burden on them. Airlines are already reeling under record high fuel prices. Confusion arose on whether or not excise duty was leviable on domestic airlines for their foreign flights after the government slapped a ₹6 per litre special additional excise duty on the export of jet fuel from July 1.