Ranchi: On Wednesday, Hemant Soren, Chief minister of Jharkhand announced the decision to reduce Aviation Turbine Fuel Tax from 20 percent to 4 percent in order to boost air travel in the state. The state government has decided to amend serial number one of Schedule II Part-E of the Jharkhand Value Added Tax Act, 2005.
Now, the tax on aviation turbine fuel in Jharkhand will be reduced by 16 percent. This decision is expected to bring down airfares along with increasing air connectivity in the state, the tourism sector will also get a boost. There is a constant tussle between the Central and state governments over the prices of large petroleum products in the country. The central government has been continuously saying that the state governments can benefit their people by reducing VAT by giving cheap oil to the people of the state.
Meanwhile, the Hemant government had announced to reduce rates of petrol for BPL families as the government will give Rs 25 per liter as subsidy on petrol to the BPL families and duly passed it in the cabinet meeting and it is applicable only in Jharkhand. Now, the Jharkhand government has given a big relief to the air travelers by reducing the 16 percent tax on Aviation Turbine Fuel.
