Scindia urges states to reduce tax on aviation fuel

by IANS |

New Delhi, Oct 18 (IANS) Citing the huge demand for air travel particularly after the Covid pandemic, Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday urged seven states and one union territory to reduce tax on jet fuel.

The Minister made the remarks while addressing the Civil Aviation Ministers' conference here.

Scindia said that air traffic growth will be driven by smaller cities, adding that the Value Added Tax (VAT) on jet fuel is still high in Goa, Assam, Delhi, Maharashtra, West Bengal, Rajashthan, Bihar and Tamil Nadu in the range of 20-30 per cent.

Jet fuel cost accounts for a major part of an airline's operational costs and many states have already reduced the taxes in the last couple of months.

The Minister stressed on the need to bring down entry barriers in the context of high VAT on jet fuel in some states.

Currently, 28 states and Union Territories have VAT on jet fuel in the range of 1-4 per cent, he added.

He said that the the country's civil aviation sector as a towering phoenix, and operating seamlessly in a high-demand environment compared to issues faced by travelers and airports in different parts of the world.

Taking cognizance of the high VAT on ATF being levied earlier, the issue was taken up by the Ministry with the states/union territories.

As a result, VAT on ATF has been reduced by Andaman & Nicobar Islands, Uttarakhand, Jammu & Kashmir, Ladakh, Himachal Pradesh, Tripura, Madhya Pradesh, Haryana, Karnataka, Uttar Pradesh, Gujarat, Dadra & Nagar Haveli and Daman & Diu, Arunachal Pradesh, Manipur, Jharkhand and Mizoram.

Latest News
Muslim college row: Ruling BJP in K'taka takes U-turn, says matter not discussed at all Thu, Dec 01, 2022, 03:09 PM
ILO notes 'striking fall' in real wages worldwide Thu, Dec 01, 2022, 03:06 PM
Iran summons French envoy over Minister's 'unacceptable' remarks Thu, Dec 01, 2022, 02:28 PM
WFP cuts food aid to Sudan due to funding gap Thu, Dec 01, 2022, 02:16 PM
BJP MP mounts blistering attack on Ramdev Thu, Dec 01, 2022, 02:08 PM
Advanced Light Helicopter Mk-III commissioned in Coast Guard Thu, Dec 01, 2022, 02:00 PM
Sanjay Malhotra takes over as Revenue Secretary Thu, Dec 01, 2022, 12:59 PM
Ex-US President Bill Clinton tests Covid positive Thu, Dec 01, 2022, 12:45 PM
Shiv Sena (UBT) protests against Maha Minister for equating CM with Chhatrapati Thu, Dec 01, 2022, 12:40 PM
JD (S) supremo Deve Gowda to begin poll campaign from Jan 2023 Thu, Dec 01, 2022, 12:30 PM
Pregnant women's care RTI: Ex-PM Singh's JSY 'outraces' PM Modi's PMSMA Thu, Dec 01, 2022, 12:20 PM
Men sulk as women occupy more than half of MGNREGA mates' position in Rajasthan Thu, Dec 01, 2022, 11:59 AM
Covid-19 hospitalisations rise in Italy Thu, Dec 01, 2022, 11:57 AM
Overweight women more likely to experience long Covid than men Thu, Dec 01, 2022, 11:55 AM
'Questt' best app, 'Apex Legends Mobile' top game on Google Play in India Thu, Dec 01, 2022, 11:54 AM