In an attempt to bring down operating cost of airlines, Civil Aviation Minister Ajit Singh today asked chief ministers of states to reduce taxes on aviation fuel. 

"We have written to chief ministers several times on the issue, but they are all worried about their fiscal problems," Singh said on the sidelines of Pan IIT Alumni Meet. 

While Chattisgarh was the only state to have reduced aviation fuel taxes by four per cent, Maharastra had publicly announced that it would consider reducing it, Singh said. 

ATF ( aviation turbine fuel) taxes in New Delhi stands at 20 per cent, in Maharastra 25 per cent and in West Bengal it is 29 per cent. 

Due to lukewarm responses from a majority of state governments in reducing ATF tax, the Centre has agreed to bring the pricing of jet fuel under the oil regulator. 

The move is aimed at accountability and reducing costs for airlines, which accounts for nearly 50 per cent of domestic airlines costs. 

Taxes on aviation fuel are reportedly an area of concern for foreign aviation majors trying to enter Indian market.

Singh said that so far no foreign airlines had approached the government for FDI clearance, adding, "I believe talks are on as reported in newspapers. They are supposed to inform us after signing the deal". 

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