Andhra government reduces tax on ATF

Hyderabad: In a bid to give a fillip to the aviation sector, the Andhra Pradesh government has reduced Value Added Tax on Aviation Turbine Fuel (ATF) to just one per cent from the existing 16 percent.

According to an order issued recently, the government said, "In the said Schedule, in the Table, against item No.(4) "Aviation Turbine Fuel", in column No.(4), the rate of tax for the figure and percentage (16 per cent), the figure and percentage (1 per cent), shall be substituted."

Recently, Union Civil Aviation Minister P Ashok Gajapathi Raju said the ministry wrote letters to all state governments to rework the tax structure on the ATF.

The states where aviation activity is low the response was positive, he had said.