Arunachal Pradesh slashes VAT on aviation fuel

New Delhi, April 12

Arunachal Pradesh on Tuesday announced a reduction in Value Added Tax on Air Turbine Fuel from 20 per cent to 1 per cent.

"The Governor of Arunachal Pradesh is hereby, pleased to reduce the rate of tax in respect of Air Turbine Fuel (ATF) for all categories of service from 20 percent to 1 percent," a notification said.

The reduction in VAT on the aviation fuel is expected to help air connectivity and incentivise civil carriers in the border northeastern Indian state.

Meanwhile, work in progress full-fledged greenfield airport at Hollongi near state capital Itanagar is reportedly set to get operationalised on Independence Day 2022, well ahead of its November 2022 date of completion.

In a bid to further boost air connectivity of the northeastern region with the rest of the country, Alliance Air was used for civil operations between Dibrugarh in Assam to Pasighat in Arunachal Pradesh .