Kingfisher and other cash-strapped airlines will now be allowed to import fuel directly on actual user basis against licences issued by the directorate general of foreign trade, or DGFT. The prescribed format for imports has been put on the DGFT website. "The government will only allow actual users to import ATF against licences. Traders who want to import to sell it to other customers will not be allowed," Commerce Secretary Rahul Khullar told ET. Kingfisher airlines chief Vijay Mallya had initiated the change in policy by asking the DGFT to allow his company to import ATF directly instead of canalising it through a state trading enterprise or STE, in this case IOC. His argument was that airlines were ending up paying huge local taxes that varied between states ranging from 4% to 30%.
Source: Economic Times
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