Visakhapatnam : To provide a boost for the aviation sector, the Centre has asked state governments to reduce the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), Union Civil Aviation Minister Ashok Gajapathi Raju said. Emphasising that one should not tax an economic activity, Raju said “we have written to the states saying please bring down the VAT”.
Andhra Pradesh has cut VAT on aviation fuel to 1%, he said at the CII’s Partnership Summit here, adding the state’s aviation sector has recorded significant growth. “Taxation should help the industry. It should not be a reason for the death of the industry,” he said.
