Union Civil Aviation Minister Jyotiraditya Scindia on Thursday thanked the Maharashtra government for reducing the VAT on jet fuel to 18 per cent and said that so far, 19 states and Union Territories have rationalised the tax rates in the last one-and-a-half years.
Presenting the 2023-24 Budget on Thursday, Maharashtra Deputy Chief Minister and Finance Minister Devendra Fadnavis also announced the reduction of Value Added Tax (VAT) on ATF to 18 per cent from 25 per cent.
In a series of tweets, Scindia thanked Maharashtra Chief Minster Eknath Shinde and Fadnavis for "taking the progressive decision to reduce VAT on Air Turbine Fuel from 25% to 18%. In a scenario of high fuel prices, this step will prove to be a catalyst in our efforts to ramp up air connectivity".
The civil aviation minister also said that Maharashtra joins the league of a total of 19 states/UTs that have rationalised VAT rates in the last 1.5 years.
"Alongside enhanced connectivity for Mumbai, Pune & Raigad, this will also make travel more affordable, and boost growth," he said.
Further, Scindia said the Maharashtra government has also allocated over Rs 100 crore for the development of airports in Shirdi, Chhatrapati Sambhajinagar, Nagpur and Baramati. "Both the decisions will herald a new phase of growth in air travel for the state." Over the past many months, Scindia has been engaging with states and Union Territories for reducing the VAT on jet fuel, which accounts for a major chunk of an airline's operational costs.
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