The Commerce Ministry has asked its finance counterpart to urge the state governments to reduce sales tax on jet fuel to help cash-strapped airlines.

Jet fuel constitutes almost half of an airline\'s operating costs in the country, due to high taxes on aviation turbine fuel levied by different states- ranging from 4 per cent to 30 per cent. Whereas, globally its only 20-25 per cent. 

In a letter to Finance Secretary R S Gujral, Commerce Secretary S R Rao has asked him to intervene in the matter. He believes the move would hugely benefit domestic airlines, which are facing huge credit problem.

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