Civil Aviation Minister Jyotiraditya Scindia has written to the chief ministers of three Opposition-ruled states, Tamil Nadu, Bihar, and West Bengal, requesting a reduction in value-added tax (VAT) on air turbine fuel (ATF). The Ministry will also be approaching the states of Assam and Delhi NCT for a similar tax reduction. Scindia has urged the states to reduce VAT on ATF to 1-4% immediately at all airports, as the current VAT on aviation fuel in these states ranges between 23.65-29.00%.
The request comes after Scindia had previously written to several other states to reduce VAT on ATF, with some having already reciprocated and others still to decide. With high airfares recorded in select routes, the Minister has been urging airline companies to reduce airfares. Go First’s operation grounding in early May has been considered as one of the significant reasons behind high airfares in some routes.
Indigo flight cancellations have worsened the situation of late, with the airline citing operational reasons for cancellations and delays. Passengers have subsequently criticized high airfares and demanded action from the government to increase competition in the aviation sector. Whether the states being asked to reduce VAT on ATF will acquiesce to the Minister’s requests remains to be seen.
