As the date of presentation of the union budget is drawing closer, the demand of the aviation industry to bring down the jet fuel prices is getting more vociferous.

Cutting down the central and state sales tax on aviation turbine fuel (ATF) form the crux of the wishlist of airlines from the budget, to be presented on February 29.

"It is the right time when the central government should step in and classify ATF as a declared good, which attracts a uniform sales tax of four per cent, to ensure that the aviation growth in the country does not falter," low-cost airline SpiceJet said in a statement presenting the budget expectations.

ATF prices in India are 60-100 per cent higher than in other countries, say airlines.

"Fuel prices amount to almost 45 per cent of the total cost of operations, whereas in most countries globally, it is not more than 18-20 per cent. Government's action of declaring ATF as declared goods will go a long way in fuelling growth of the sector," GoAir Managing Director Jeh Wadia said in a statement.

Airport charges are 62 per cent higher in India compared to the global benchmarks, Wadia added.

SpiceJet further demanded a re-look at the FDI policy for the aviation sector. "There is a need to allow strategic investors, including foreign airlines, to invest in the domestic industry," it said.

SpiceJet also demanded abolition of fringe benefit tax on accommodation provided by airlines to the crew. The crew is required to operate flights from various airports and need to be positioned there. Therefore, there is no fringe benefit in accommodation provided to the crew by airlines, it said.

Within few years of operation, low-cost airlines have gained a market share of 49 per cent in the country and policy encouragement can help them grow further, say airlines.