Union civil aviation minister Jyotiraditya Scindia on Friday called for a reduction in value added tax (VAT) on aviation turbine fuel by states. Only 16 of the 24 states had responded positively to this proposal, Scindia said. Speaking at the Mahratta Chambers of Commerce, Industries and Agriculture in Pune, Scindia said aviation turbine fuel accounted for 40% of the airlines’ cost structure. When he took over the aviation ministry, 12 states charged 1-4% VAT on ATF and 24 states/UTs charged 20-30%. At present, only eight states are charging VAT at 20-30% and 16 states had moved to the 1-4% VAT …
