Maharashtra may slash VAT on ATF in Mumbai, Pune to 4%

The Maharashtra government is now considering reducing the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 25 per cent to four per cent in Mumbai and Pune. This development comes close on the heels after the Ministry of Civil Aviation (MoCA) dashed a letter to Maharashtra’s Chief Minister, Vilasrao Deshmukh, requesting the inclusion of Mumbai and Pune airports for benefits of reduction of VAT on ATF in rest of the state. Maharashtra’s Finance Minister, Jayant Patil had reduced tax on ATF from 25 per cent to 4 per cent, while presenting the Budget (fiscal year 2008-09), however, Mumbai and Pune were not included.
“We are now considering reducing VAT on ATF by 21 per cent i.e. from 25 per cent to four per cent for Mumbai and Pune Airports. The Revenue department has already forwarded the proposal to the state Finance Minister to consider it and thereby table the proposal in the next cabinet meeting,” Narayan Rane, Maharashtra’s Revenue Minister informed TravelBiz Monitor.
21/04/08 Mayuresh Pawar/Travelbiz Monitor

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Categories: Indian Aviation- In General Apr 2008