AOAN seeks further reduction in ATF price
KATHMANDU, MAY 31
The Airline Operators Association Nepal (AOAN) has sought a discount within the value of air turbine gasoline (ATF) to profit the home aviation sector.
While saying the funds the federal government had eliminated the infrastructure improvement tax on ATF. Subsequently, Nepal Oil Corporation (NOC) had decreased the value of ATF on May 28 to Rs 65 per litre from Rs 95 a litre.
However, issuing an announcement as we speak, AOAN has stated the value of ATF needs to be additional decreased as NOC is already incomes a revenue from its gross sales.
“Even at Rs 65 per litre NOC earns a revenue of Rs 33 a litre from gross sales of ATF which isn’t cheap. Thus, it will be higher for NOC to offer ATF at a decrease value taking solely 10 per cent revenue,” reads the assertion. The assertion, nonetheless, said that together with this provision home airfare goes to say no considerably.
The affiliation has already submitted a request letter to NOC and different involved authorities requesting for an additional discount within the value of ATF. It has been requesting the federal government to scale back ATF value since lengthy.
Amid this AOAN has additionally welcomed the funds for subsequent fiscal 12 months. “COVID-19 has extremely affected the aviation sector because of which home airline firms are struggling to outlive. At this second AOAN welcomes the federal government’s determination to exempt airport providers expenses and supply 20 per cent low cost on earnings tax,” reads the assertion.
The assertion additional appreciated the federal government’s announcement of offering loans at 5 per cent rate of interest and establishing a separate fund to offer wages of tourism staff. In the imply time, AOAN has additionally requested the federal government to watch the implementation of the funds.
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