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Domestic airlines face fuel tax again

(chinadaily.com.cn)
Updated: 2009-11-11 17:14

The National Development and Reform Commission (NDRC) will re-impose a fuel tax on domestic airlines after a ten-month cancellation due to oil prices rising to 480 yuan ($70) per ton Tuesday, the Guangzhou Daily reported Wednesday.

Each passenger will be charged a fuel tax of 20 or 40 yuan ($3 or $6). Flights 800 km or less will be charged 20yuan and anything above that level will cost 40 yuan.

Airline companies will reportedly lower tickets price to sustain customers.

Recharging the fuel tax will mainly affect economy class passengers, as first class and business class passengers may not think it’s a big deal, according to one airline insider.

Efforts to contact the Civil Aviation Administration of China for more information failed.