VAT on Aviation Turbine Fuel slashed to 4% at Indore & Bhopal airports; airfares expected to fall

VAT on Aviation Turbine Fuel slashed to 4% at Indore & Bhopal airports; airfares expected to fall

The existing 25% VAT on ATF at Indore's Devi Ahilya Bai Holkar Airport and Bhopal's Raja Bhoj Airport has been reduced to 4% now

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

[rebelmouse-proxy-image https://media.rbl.ms/image?u=%2Fwp-content%2Fuploads%2F2017%2F03%2FFlight-Taxscan.jpg&ho=https%3A%2F%2Fwww.taxscan.in&s=76&h=e047b7cb86b42c8c511174b382b8dddb8c7c8f0cce967c6ff29b91c04fbceb13&size=980x&c=1024147959 photo_credit="" pin_description="" dam="0" site_id=20074994 caption="" photo_credit_src="https://www.taxscan.in/wp-content/uploads/2017/03/Flight-Taxscan.jpg" crop_info="%7B%22image%22%3A%20%22https%3A//media.rbl.ms/image%3Fu%3D%252Fwp-content%252Fuploads%252F2017%252F03%252FFlight-Taxscan.jpg%26ho%3Dhttps%253A%252F%252Fwww.taxscan.in%26s%3D76%26h%3De047b7cb86b42c8c511174b382b8dddb8c7c8f0cce967c6ff29b91c04fbceb13%26size%3D980x%26c%3D1024147959%22%7D" expand=1]

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.

To get all the latest content, download our mobile application. Available for both iOS & Android devices. 

Related Stories

No stories found.
Knocksense
www.knocksense.com