The Maharashtra authorities on Thursday introduced lowering the worth added tax levied on aviation turbine gasoline (ATF) to 18 per cent from 25 per cent, giving relief to home carriers.
The new price shall be relevant in Mumbai, Pune and Raigad districts, deputy chief minister Devendra Fadnavis introduced in his price range speech. Maharashtra levies 4 per cent VAT on ATF in districts besides Mumbai and Pune.
Mumbai is India’s second busiest airport with 315 home departures every day. Pune ranks among the many prime ten busiest home airports. Raigad doesn’t have a purposeful airport however the upcoming Navi Mumbai airport is within the district.
The new price may assist in lowering gasoline bills for airways as they rework their fueling uplift plans however it isn’t anticipated so as to add to many new flights as each Mumbai and Pune airports are constrained for slots.
“In a scenario of high fuel prices, this step will prove to be a catalyst in our efforts to ramp up air connectivity. Maharashtra joins 19 states/union territories that have rationalised VAT in the last one and half years. Alongside enhanced connectivity for Mumbai, Pune and Raigad this will also make travel more affordable and boost growth,” mentioned civil aviation minister Jyotiraditya Scindia on Twitter.