Make Jet Fuel Tax Free

There is trouble brewing in India's civil aviation industry. With many private players, including a host of low-cost ones, this was one shining success story of liberalization and privatization in India.

Things started to go awry about a year ago. Deccan, a pioneer in the low-cost segment, merged with Kingfisher. And now Jet has done the same. Further, Jet has sacked 1900 employees – only to take them back a few days later.

(My advice to all workers: Don't work for a losing firm. This also means don't ask politicos to force losing firms to keep you on the payroll. You'd be better off looking for a job in a profit-making company.)

What ails the civil aviation industry in India? After all, this is a huge country. Roads and railways are terrible. Why should civil aviation fail?

I found the answer in this extract from a news report in Mint:

"Jet fuel, or aviation turbine fuel, accounts for 45% of the operational costs of Indian carriers and is 70% more expensive than in foreign markets because of multiple taxes, including one levied by the states."

This must be true. My Delhi-Goa ticket mentioned the fare as 2000 rupees. An additional 2900 rupees was listed as "fuel surcharge" – which went to the government. The government is, of course, running the railways (into the ground!) – and this is one sure way of keeping the railways alive. Because of this fuel surcharge on a flight ticket, more and more people are switching back to the unsafe railways. This is not progress. Our nation's growth is being retarded. Retards are in charge of policy – especially taxation policy.

My view: All taxation in India is theft. These taxes on jet fuel even more so. All these taxes should be rolled back in the interest of better, faster and safer travel. Air travel should be allowed to come within the reach of all. That would be PROGRESS.