Giving great relief to air travelers, the Bihar government has announced a 25 percent reduction in VAT rate on aircraft fuel (ATF). This step has been taken with the aim of increasing air connectivity in the state and encouraging aviation companies. Under this decision, air fares are expected to decrease from ₹ 500 to ₹ 1100.
Approval received in the Council of Ministers, now VAT will be reduced from 29% to 4%
Due to higher VAT rate of Bihar than other states, companies used to abstain in air fuel purchases
Chief Secretary Dr. S. Siddharth informed that the State Council of Ministers approved the proposal for this deduction on Tuesday. Now the rate of VAT on aircraft fuel has been reduced from 29 per cent to only 4 per cent. Comparison, states like Uttar Pradesh, Jharkhand, Delhi, Gujarat and Maharashtra already had low rates, which gave priority to fuel from these states itself.
Extension of air services in other cities including Patna is possible
Companies will get encouragement, the number of passengers will also increase due to reduced fare
According to experts, this decision will provide new energy to the aviation companies to operate in Bihar. The number of flights to be conducted from Patna Airport may increase and the fall in air tickets by ₹ 1100 will provide relief to common passengers.
This step will also strengthen air connectivity in the assistant cities of the state, which will strengthen regional development.
