The Gujarat government on Tuesday, decided to cut the tax on aviation turbine fuel (ATF) by 20 per cent, an official statement said here.
The tax-relief — the second time in 21 days — is expected to benefit private aviation companies, especially those trying to operate intra-state flights.
After the announced cut, the Value Added Tax on ATF will be 5 percent. On December 13, 2021, Gujarat had declared a 5 per cent reduction in taxes.
The state government defended its decision saying that the move will boost tourism-related activities in Gujarat. The decision comes immediately after intra-state flights from Surat were relaunched for the fourth time ahead of the Vibrant Gujarat Summit, scheduled to start on January 10.
