Airfares set to rise as government hikes custom duty on Aviation fuel

Customs duty on ATF has been hiked to 5 per cent


Flyers may have to shell out more towards air travel as the government late on Wednesday increased customs duties on 19 items to curb the widening current account deficit (CAD). One of the items for which customs duty has been hiked is aviation turbine fuel (ATF), which is used by aeroplanes. 

A 5 per cent hike in basic customs duty would mean that airlines would now have to shell out Rs 2,000 per kilolitre starting Thursday. Subsequently, airlines are also expected to hike ticket prices to offset the cost.