VAT cut on ATF to boost aviation
Telangana Industry and IT Minister KT Rama Rao on Friday announced the reduction in value-added tax (VAT) on aviation turbine fuel (ATF) from 16 per cent to one per cent.
Hyderabad: Telangana Industry and IT Minister KT Rama Rao on Friday announced the reduction in value-added tax (VAT) on aviation turbine fuel (ATF) from 16 per cent to one per cent.
Recalling what Telangana government promised during Wings India-2018 recently, KTR said the cut in VAT will come into force immediately and this will further boost aviation industry growth, while adding that the Airport Express Connectivity project, with an investment of Rs 4,650 crore, connecting the airport will be completed in two years.
Speaking at an event organised by the GMR Group on the occasion of completing 10 years of the Rajiv Gandhi International Airport, KTR said: “The number of passengers at Hyderabad airport may touch 40 million annually in near future. Hyderabad is attracting more international carriers. As part of the Hyderabad Metro Airport Express, the metro rail will connect the airport located 30 km from the city.”
The latest announcement of reduction in VAT is likely to cost the exchequer to the tune of Rs 300 crore annually as the total VAT on ATF in the country is estimated to be Rs 4,000 crore. Hyderabad, Delhi, Mumbai, Bengaluru and Chennai account for over 60 per cent of total ATF sales in the country.
Telangana Chief Minister K Chandrasekhar Rao laid the foundation stone for Hyderabad airport expansion works and launched the Hyderabad Airport City project. The Chief Minister also laid the foundation stone for an exhibition-cum-convention centre as well. Speaking after the foundation stone ceremony, KTR further said the development of India's first Greenfield airport by GMR Group was the most remarkable and inspiring story.
KTR added: “The most modern airport is the shining example of what Telangana and Hyderabad stand for. Hyderabad airport is the brand ambassador of our ambition to position Hyderabad as the global city.”