Question : Reduction of Aviation Turbine Fuel

(a) whether the Government has taken/proposes to take any step for the reduction of Aviation Turbine Fuel (ATF) tax and if so, the details thereof; and
(b) if not, the reasons therefor?

Answer given by the minister

Minister of State in the Ministry of CIVIL AVIATION (GEN. (DR) V. K. SINGH (RETD))

(a) and (b): Yes Sir. Ministry of Civil Aviation has already taken up the issues of reduction in Central Excise Duty on Aviation Turbine Fuel (ATF) with Ministry of Finance and reduction of Value Added Tax (VAT) on ATF with State Governments/ Union Territories (UTs) on multiple occasions. Based on the request, VAT on ATF has recently been reduced in the range of 1-4% by Andaman & Nicobar Islands, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Madhya Pradesh, Tripura and Uttarakhand in their respective States/ UTs.

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