Gujarat cuts tax on aviation fuel

Gujarat cuts tax on aviation fuel
The Government of Gujarat has decided to slash the value-added tax on Aviation Turbine Fuel from 30 per cent to 4 per cent for all non-scheduled flights operating within the state, to encourage intra-state aviation.

Fuel cost constitutes around 40 per cent of the total operating cost of the airline industry and this move by the Gujarat Government will help corporate like Adani, Reliance, Essar, United Phosphorous etc, who regularly operates own planes in the state, to save up to 20 per cent on fuel costs.

Vipul Mitra, principal secretary in the state aviation and tourism department, quoted "Scheduled flights are already getting the benefit of lower VAT on ATF. Now the same rate is applicable to non-scheduled flights."

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