Thursday, March 09, 2017

Air travel from Delhi to remote areas set to get cheaper

New Delhi: Air travel from Delhi to remote areas will be cheaper with the AAP government on Thursday announcing slashing of VAT on Air Turbine Fuel (ATF) from existing 25 per cent to one per cent to compliment the Centre's regional connectivity scheme (RCS).

Presenting the Delhi budget for 2017-18, Deputy Chief Minister Manish Sisodia said the cut in VAT on ATF will be applicable for direct flights between Delhi and remote areas identified under the RCS scheme as per prescribed conditions.

Sisodia said the decision to cut the VAT on ATF will benefit people from the Northeast and other remote areas as fares under RCS will come down significantly.

The regional connectivity scheme UDAN (Ude Desh Ka Aam Nagrik) is aimed at promoting at connectivity to smaller cities. The scheme was launched last year but flights under it are yet to take off.

"We have decided to bring down VAT on ATF from 25 per cent to 1 per cent for flights to remote areas such as North Eastern states to support the Centre's regional connectivity scheme," Sisodia said.

An official from the Civil Aviation Ministry said though Delhi's IGI airport is not an RCS airport, the concession has been extended by the Delhi government to support RCS on the ministry's request.
09/03/17 PTI/Asian Age