Mumbai: Civil Aviation Minister Jyotiraditya Scindia urged states to reduce value-added tax (VAT) on aviation turbine fuel (ATF). He said only 16 of the 24 states had responded positively to this proposal, adding that ATF accounted for 40% of the airlines’ cost structure.
Speaking at the Mahratta Chambers of Commerce, Industries and Agriculture in Pune, Scindia said avionics turbine fuel represented 40% of the aircraft’s expense structure. At the point when he assumed control over the flying service, 12 states charged 1-4% VAT on ATF and 24 states/UTs charged 20-30%. As of now, just eight states are charging VAT at 20-30% and 16 states had moved to the 1-4% VAT rates, he said.
Scindia said when ATF costs had gone up from Rs 53,000 for each kilo liter to Rs 1,41,000 for every kilo liter, paying 20-30% VAT wouldn’t be suitable for carriers. He encouraged Maharashtra, which was among the states charging high duty, to step forward and bring down VAT as the entire nation was moving like that and the traffic would move to different states. Andhra Pradesh and Kerala had brought down VAT and delighted in 15-20% more noteworthy network, he said.
Concerning at the Pune Airport, the priest declared that the guard service had given extra 14 spaces each day for the Pune Airport, a protection-controlled air terminal. From Monday to Saturday, openings had gone up from 102 to 116 and spaces on Sunday had gone up from 131 to 145. He called for working on global network from Pune and said Vistara had applied for availability to Singapore.
The Pune Airport had a limit of 7.7 million for every annum and work had begun the new terminal structure that would be prepared in August 2023 and take ability to 17 million with a speculation of Rs 475 crore, Scindia said. The ‘120 crore staggered vehicle leaving will be prepared in October. Freight limit at the air terminal was being extended from 25,000 metric tons to 43,000 metric tons by March ’23. A worldwide air freight terminal would come up in December 2024.
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