Wednesday, November 17, 2021

MP cuts VAT on aviation turbine fuel at Bhopal, Indore airports to 4%

In a bid to enhance air connectivity, the Madhya Pradesh government has decided to reduce the Value Added Tax (VAT) on aviation turbine fuel (ATF) to 4 per cent at Bhopal and Indore airports, a move it hopes will bring down airfares, an official said on Wednesday.

Currently, VAT on ATF was 25 per cent at Bhopal and Indore airports, and with the decision to slash it taken by the state cabinet on Tuesday, it will come down to 4 per cent, the official from the public relations department said.

"Like Gwalior, Jabalpur and Khajuraho airports where VAT on ATF is 4 per cent, the state government has decided to rationalise it at Bhopal and Indore airports too by reducing it from 25 per cent to 4 per cent, the official said.

This decision will give a boost to the tourism and hospitality sector in the state, apart from enhancing air connectivity, he said.

The move will prompt the aviation companies to reduce airfares, introduce more flights from the state and provide relief to air passengers, the official said.

Union Civil Aviation Minister Jyotiraditya Scindia had earlier demanded that VAT on ATF in Madhya Pradesh be reduced to a uniform 4 per cent to attract more flights to his home state.

17/11/21 PTI/

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