Sunday, July 09, 2017

Kerala to reduce VAT on aviation fuel

Kerala has announced reduction of Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from the existing 4% to 1% for airlines ready to operate in the State under the Union government’s UDAN (Ude Desh ka Aam Naagrik) scheme, an endeavour to make regional connectivity easy.

The initiative was announced at Wings 2017, a meeting of the Regional Connectivity Scheme (RCS) organised by the Union Ministry of Civil Aviation at Manekshaw Centre, Delhi, on Friday. The official notification will be issued soon, the meeting was informed.

Kerala is also for reducing the VAT on ATF to 1% for all airlines, including foreign carriers operating to Thiruvananthpauram, Kochi, and Kozhikode and the upcoming airport at Kannur.

The State also informed the meeting, attended by Union Minister for Civil Aviation Ashok Gajapathy Raju, its plan to construct airstrips in Munnar, Guruvayur, Wayanad and Bekal to improve regional connectivity.

The State was represented by the Additional Residents Commissioner, New Delhi, Punit Kumar and Chief Project Engineer in charge of Kannur International Airport Ltd (KIAL) K.S. Shibukumar at the meeting.

Andhra Pradesh, Haryana, Punjab and Meghalaya also announced incentives for UDAN by lowering the VAT on ATF to 1% at the meeting, official sources said.
08/07/17 S. Anil Radhakrishnan/The Hindu