In an attempt to boost air connectivity, the Madhya Pradesh government has decided to reduce the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) at Indore's Devi Ahilya Bai Holkar Airport and Bhopal's Raja Bhoj Airport. As per reports, the decision to slash the existing 25% VAT on the ATF to 4% was taken in a cabinet meeting on Tuesday. This move is expected to bring down the airfare thereby facilitating better connectivity.

Uniform VAT rate set across MP

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In a bid to encourage airlines to increase frequencies and push them to add new routes from Madhya Pradesh, the administration has decided to slash taxes on aviation fuel. Notably, the VAT collected on ATF at the airports in Gwalior, Jabalpur and Khajuraho is set at 4% at present.