In a big relief to airlines, the state government on Wednesday reduced the tax on Aviation Turbine Fuel (ATF) from the existing 28% to 18%, with effect from January 1, 2022.
A notification slashing the tax rate was issued by the Finance Department. The reduction could give a boost to airlines struggling under the pandemic-imposed restrictions. Last week, the Indian Oil Corporation (IOC) had reduced ATF prices, and this could further help airlines recover part of their losses.
The reduced ATF price and taxes are also expected to help airlines operating out of the Kempegowda International Airport (KIA), currently the third busiest in the country.
