New Delhi: Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday said that Value Added Tax (VAT) on jet fuel is still high in eight states and Union Territories and urged them to reduce the rate.
The Minister urged Assam, Maharashtra, West Bengal, Delhi, Tamil Nadu, Rajasthan, Bihar, and Punjab governments to reduce VAT, which is in the range of 20-30 per cent, on Air Turbine Fuel (ATF).
Currently, 28 states and Union Territories have VAT on jet fuel in the range of 1-4 per cent, he added.
"New growth to come from Tier 2 and 3 cities," he said and emphasised the need to bring down entry barriers in the context of high VAT on jet fuel in some states.
Scindia promised to increase aeroplane connectivity in these eight states if they reduce VAT on ATF.
"I urge you (eight states) politely to reduce VAT on ATF. I promise you to increase the aeroplane connectivity in your states," Scindia said while speaking at the concluding session of a two-day conference of Ministers of Civil Aviation of all states and Union Territories here.
Scindia extended special thanks to Andaman and Nicobar Islands, Mizoram, Tripura, Haryana, Manipur, Arunachal Pradesh, Uttar Pradesh, Ladakh, Jammu and Kashmir, Uttarakhand, Himachal Pradesh, Dadar and Naga Haveli and Daman and Diu, Madhya Pradesh, Jharkhand, Gujarat and Karnataka for reducing VAT on ATF on the request of Civil Aviation Ministry.
Pointing to Prime Minister Narendra Modi's vision to "democratise" the civil aviation sector, Scindia said the civil aviation sector is not meant for a chosen field, it must be for the comman man.
