INDIAN GUJARAT GOVERNMENT REDUCES AVIATION FUEL TAX

The Gujarat government has sharply reduced tax on aeroplane fuel for flights operating within the state to encourage intra-state aviation. Value-added tax on Aviation Turbine Fuel was cut from 30% to 4% for all non-scheduled flights days after the state called on Deccan Charters to start intra-state aviation service. Corporates operating own flights in the state can now save up to 20% on fuel costs. Fuel cost constitutes around 40% of the total operating cost of an airline. Business groups like Adani, Reliance, Essar, United Phosphorous, Sterling, Electrotherm among others regularly use own planes in the state. Aviation experts say