Scindia writes to three Oppn-ruled states requesting cut in VAT on aviation fuel
Jun 26, 2023
New Delhi [India], June 26 : Civil Aviation Minister Jyotiraditya Scindia has written to the chief ministers of Tamil Nadu, Bihar, and West Bengal -- three Opposition-ruled states, asking them to reduce value-added tax (VAT) on air turbine fuel (ATF), sources said.
The Ministry will also reach out to Assam and Delhi NCT on reducing such tax on aviation fuel, the sources added.
The minister requested these states to reduce VAT to 1-4 per cent. Significantly, the three states in question haven't reduced VAT on Aviation Turbine Fuel.
Currently, VAT on aviation fuel in these states range between 23.65-29.00 per cent.
The minister emphasized the need to reduce the existing VAT/Sales Tax on ATF to 1-4 per cent with immediate effect at all airports.
Even earlier, the Civil Aviation Minister had written to several states to reduce VAT on ATF, many of which have reciprocated while many are yet to decide.
According to aviation industry sources, the letter to those states has been written at a time when high airfares are recorded in some select routes -- apparently due to the grounding of Go First operations as it filed for insolvency in early May.
The Ministry has been repeatedly urging airline companies to reduce airfares.
