Dadra-Nagar Haveli and Daman-Diu cuts VAT on jet fuel to 3%

Representational image.

The value added tax on jet fuel in the Union Territory of Dadra and Nagar Haveli and Daman and Diu has been cut to 3 per cent from 20 per cent, with Union Civil Aviation Minister Jyotiraditya Scindia terming the move as a "progressive decision".

The civil aviation ministry has been urging states and Union Territories (UTs) to reduce the VAT levied on Aviation Turbine Fuel (ATF), which is the major component of an airline’s operational costs.

The airline industry has been significantly impacted by the coronavirus pandemic. In a tweet on Friday, Scindia thanked Praful K Patel, the Administrator of the Union Territory of Dadra and Nagar Haveli and Daman and Diu, for the "progressive decision" to reduce VAT on Air Turbine Fuel (ATF) to 3 per cent.

"While we march stronger with 24 states/ UTs on the side of low VAT rates, I urge the others to jump on our bandwagon & help bring greater connectivity to people,” Scindia said.

Earlier this week, the Union government hiked the price of ATF by 8.5 per cent amid the spike in international oil prices.