Gujarat govt reduces VAT on ATF by 5%

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The Gujarat government on Monday decided to slash Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) used in aviation services by five per cent in a bid to boost tourism, the Chief Minister's Office (CMO) said. The reduction will come into effect from midnight today (Monday), it said.

"Chief Minister Bhupendra Patel has decided to reduce the value-added tax rate on Aviation Turbine Fuel (ATF) used in aviation services by five per cent. This people-oriented decision will give a boost to tourism activities in the state," the CMO said in a statement.

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The VAT reduction on ATF is likely to translate into airlines slashing airfares, thereby encouraging tourists to visit Gujarat in more numbers.