LAGATAR24 NETWORK
Ranchi, June 15: The Hemant government has decided to reduce the Aviation Turbine Fuel (ATF) tax. It has been reduced from 20% to just 4%.
This decision has been taken to increase air connectivity in the state. For this, serial number one of Schedule II Part-E of Jharkhand Value Added Tax Act, 2005 will be amended under which the tax rate on Aviation Turbine Fuel (ATF) will be reduced from 20 percent to 4 percent.
This notification shall be effective from the date of its publication in the Official Gazette. This decision is expected to bring down airfares. Along with increasing air connectivity in the state, the tourism sector will also get a boost.
A member of Birsa Munda Airport Advisory Committee Chhavi Birmani did not see it as a big relief for air passengers.
“It is difficult to assess how far reduction in ATF will help reduce the price of air tickets as all of us know that air ticket prices for the same destination keep on varying. Sometimes one has to give Rs 8000 for the same destination which they sometimes cover in Rs 5000,” Birmani said.
A person having a rough idea of air ticketing said ATF accounts for 40 percent of air tickets. If tax on ATF is reduced by 16 percent there will be a minor reduction.
