Scindia urges 22 states to reduce VAT on ATF to 1-4% to boost air travel

Civil Aviation Minister Jyotiraditya Scindia has urged 22 states and Union territories (UTs) to reduce value-added tax (VAT) on aviation turbine fuel (ATF) and bring it within the range of one to four per cent across all airports in order to give an impetus to air travel, the Ministry of Civil Aviation said on Wednesday. “The price of ATF is a major component of the operating cost of airlines. With that, the tax on ATF contributes significantly to the ATF price,” according to a statement issued by the ministry.