Friday, November 19, 2021

Govt Set To Reduce ATF Tax. 'Our Competition Is With Railways', Says Civil Aviation Minister

New Delhi: After bringing down taxes on petrol and diesel, the government is now preparing to cut down taxes on Aviation Turbine Fuel (ATF), the fuel for air planes, to make air travel cheaper. Aviation Minister Jyotiraditya Scindia said seven states and Union Territories of the country have reduced the value-added tax (VAT) on jet fuel to less than 4 per cent.

Scindia said that Uttarakhand, Himachal Pradesh, Haryana, Madhya Pradesh, Jammu and Kashmir, Ladakh and Andaman Nicobar have reduced VAT on jet fuel to between 1-4 per cent. At present, there are more than 22 states and Union Territories where the VAT rate is more than 4 per cent. The Central Government has written to the Chief Ministers and Lieutenant Governors of other states requesting them to bring down the VAT.

Jyotiraditya Scindia said, "Our competition is with the railways. We are trying to reduce the airfare to an extent where passengers travelling in the AC two-tier railway coaches can travel by plane at the same cost. This requires reducing the tax rate and we are swiftly working to make it happen."

19/11/21 ABP

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