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MP govt reduces VAT on ATF to 4% from 25%

Bhopal, Nov 17 (IANS) The Madhya Pradesh government has decided to reduce the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) to four per cent at Bhopal and Indore airports.

The move is aimed to enhance air connectivity which will help bring down airfares. As per a senior official at Bhopal's Raja Bhoj airport, currently, VAT on ATF was 25 per cent at both Bhopal and Indore airports.

The decision to slash VAT on ATF was taken in a cabinet meeting held on Tuesday, though it was announced by Chief Minister Shivraj Singh Chouhan on Wednesday.

"Happy to share that after giving relief to the people on petrol and diesel, my govt have decided to reduce VAT on ATF to 4 per cent at Bhopal and Indore. This decision will encourage airlines to increase their frequencies and add new routes from MP," Chouhan said in his official twitter handle.

The VAT on ATF at three other airports in the states - Gwalior, Jabalpur and Khajuraho is at 4 per cent, in the same line, the state government has decided to rationalise at Bhopal and Indore too by reducing it from 25 per cent to 4 per cent, the government said in an official communication on Wednesday.

Sources said the move came following Union Civil Aviation Minister Jyotiraditya Scindia's recommendation. Scindia had earlier written to Shivraj Singh Chouhan demanding that VAT on ATF in Madhya Pradesh be reduced to a uniform 4 per cent to attract more flights to his home state.