Chandigarh, Aug 1 (PTI) The Haryana cabinet on Friday approved a proposal to reduce the concessional rate of value-added tax (VAT) to 1 per cent from the existing 20 per cent on Aviation Turbine Fuel (ATF) sold at all airports in the state.
The step will help in promoting regional air connectivity and allied aviation activities.
The revised notification aligns with the Ministry of Civil Aviation’s UDAN scheme and the Tripartite Memorandum of Understanding (MoU) signed in 2017, an official statement said here after the cabinet meeting, which was held under the chairmanship of Chief Minister Nayab Singh Saini.
As per the latest amendment, the concessional VAT rate of 1 per cent will be applicable on ATF sold to all passenger flights, including RCS-UDAN scheme flights, Maintenance, Repair and Overhaul (MRO) activities, and air adventure services at all airports in Haryana.
As the proposed amendment relates to the rate of VAT on ATF when sold to the said categories of flights and activities, it will be applicable from the date of its notification up to July 6, 2027, the terms of the MoU stated. PTI SUN SHW
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