In a bid to strengthen air connectivity to the state and boost tourism, the Jharkhand government on Wednesday announced it had slashed VAT (value added tax) on Aviation Turbine Fuel (ATF) to 4 per cent from 20 per cent. The decision to reduce tax has been taken to increase air connectivity in the state and bring down airfares to boost tourism, a statement by the state government said.
“The State Government will amend serial number one of Schedule- II Part-E of Jharkhand Value Added Tax Act, 2005 in order to improve the air connectivity in the state. Under this, the tax rate on Aviation Turbine Fuel (ATF) will be reduced from 20 percent to 4 percent,” the statement said.
