Indore: The Madhya Pradesh government on Saturday slashed VAT on air turbine fuel (ATF) to 5% to drive the aviation boom in the state. This will bring down air fares by up to Rs 2,000. Earlier, VAT on ATF was 23% - the highest levy by any state in the country. Chief minister Shivraj Singh Chouhan made this announcement while laying the foundation of the TCSSEZ in Indore.
The VAT cut will raise air connectivity and attract more domestic carriers to the state. Now, the fuel price will come down to Rs 80 per litre against the existing Rs 100 and is likely to reduce fares by up to Rs 2000.
The Centre and the Confederation of Indian Industry had been pushing the state to cut VAT to make air operations more viable and raise air traffic in Madhya Pradesh.
Chairman of Madhya Pradesh, CII, Ranjan Mimani, said, "While we expect fare cut of up to Rs 500 in Indore, it will raise frequency of flights and passenger load, thus making operations more viable."
Read News in Full 11/08/13 Times of India
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