Arunachal Pradesh cuts VAT on jet fuel to 1 pc from 20 pc

Arunachal Pradesh government has reduced value-added tax (VAT) on the sale of aviation turbine fuel (ATF) or jet fuel to 1 per cent from 20 per cent in a bid to give impetus to air connectivity in the state.

"In exercise of powers conferred under Sub-Section (2) of Section 4 read with Section 104 of the Arunachal Pradesh Goods Tax Act 2005, the Governor of Arunachal Pradesh is hereby, pleased to reduce the rate of tax in respect of Air Turbine Fuel (ATF) for all categories of service from 20 per cent to 1 per cent," Arunachal Pradesh's Department of Tax & Excise said in a notification.

The price of aviation turbine fuel is a major component of the operating cost of airlines. The reduction in tax is expected to give an impetus to air connectivity and travel in the state.

( With inputs from ANI )