The Andhra Pradesh Finance Minister Yanamala Ramakrishnudu today said that the Government is considering bringing down the VAT on aviation turbine fuel from the present 16 per cent to 1 per cent and has proposed three no frills airports in the State.
The revenue potential of aviation turbine fuel in the residuary State of Andhra Pradesh is about Rs. 27 crore per annum when 16 per cent VAT is levied. If the VAT is reduced on ATF as planned, the revenue loss is likely to be about Rs. 25.32 crore, he said in the State Assembly today.
In order to improve connectivity to Tier-2 and tier-3 cities, the State Government has initiated proposals to promote regional Greenfield airports.
As a part of the process to strengthen the infrastructure, the State Government has proposed to set up no-frills airports at Kuppam, Nellore and Srikkulam.
06/09/14 V. Rishi Kumar/Business Line
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The revenue potential of aviation turbine fuel in the residuary State of Andhra Pradesh is about Rs. 27 crore per annum when 16 per cent VAT is levied. If the VAT is reduced on ATF as planned, the revenue loss is likely to be about Rs. 25.32 crore, he said in the State Assembly today.
In order to improve connectivity to Tier-2 and tier-3 cities, the State Government has initiated proposals to promote regional Greenfield airports.
As a part of the process to strengthen the infrastructure, the State Government has proposed to set up no-frills airports at Kuppam, Nellore and Srikkulam.
06/09/14 V. Rishi Kumar/Business Line
