Haryana Slashes VAT on Aviation Fuel to Boost Regional Connectivity

The Haryana cabinet approved reducing the VAT on Aviation Turbine Fuel from 20% to 1% to enhance regional air connectivity. This decision aligns with the UDAN scheme and a 2017 MoU, applying the new rate to passenger flights and aviation activities at Haryana airports until July 2027.

The Haryana government has taken a significant step to bolster regional air connectivity by reducing the Value-Added Tax on Aviation Turbine Fuel from the existing 20% to just 1%.

This move is part of an effort to align with the Ministry of Civil Aviation's UDAN scheme and follows a Tripartite Memorandum of Understanding signed in 2017. The decision was made in a cabinet meeting led by Chief Minister Nayab Singh Saini.

The revised tax rate applies to all passenger flights, including those operating under the RCS-UDAN scheme, Maintenance, Repair and Overhaul activities, and air adventure services at all airports in Haryana. These favorable rates will be in effect from the date of notification until July 6, 2027.

(With inputs from agencies.)