States to consider reduction of VAT on ATF

The development came as Civil Aviation Minister Hardeep Singh Puri held a high-level meeting with representatives of West Bengal, Bihar, Chattisgarh, Jharkhand, Madhya Pradesh, Odisha and Uttar Pradesh state government on Monday.

New Delhi:Various state governments on Monday assured the Centre on considering a reduction of VAT rates on jet fuel, so as to support domestic airlines sustain commercial operations.

The development came as Civil Aviation Minister Hardeep Singh Puri held a high-level meeting with representatives of West Bengal, Bihar, Chattisgarh, Jharkhand, Madhya Pradesh, Odisha and Uttar Pradesh state government on Monday.

"The meeting ended with assurance being expressed by states for considering the reduction of VAT on ATF," the Ministry of Civil Aviation said in a statement.

India has one of the highest state governments' levied VAT rates on jet fuel. This makes the overall cost of airline operations high.

According to the statement, the state governments also expressed their active support for the routes offered under the regional connectivity 'Udan' scheme for the growth of the aviation sector.