Cabinet decides to deduct 5 pc VAT on ATF

Thiruvananthapuram, Sep 28: Kerala Cabinet has decided to deduct five per cent Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) aiming a major leap in the air aviation sector. The Cabinet took a decision in this regard following the Centre's direction to bring down minimum one per cent tax on aviation fuel to promote air service connectivity between major cities in the country. The Cabinet which met here yesterday decided to reduce five per cent VAT from the existing 28.75 per cent for the next five years to attract more customers to air travel and tourism sectors. Meanwhile, stakeholders in the industry observe that the five per cent deduction, instead of one per cent, could help for a major leap of the aviation sector in the state. UNI