'Boost For Aviation Sector': Bihar Cabinet Decision To Make Air Travel Affordable

Janata Dal (United) MP Sanjay Kumar Jha lauded Bihar Chief Minister Nitish Kumar after the state cabinet reduced VAT on airline fuel from 29 per cent to just 4 per cent.

The new terminal of Jai Prakash Narayan International Airport, ahead of its inauguration, in Patna.

Source : PTI

The Bihar cabinet has approved a landmark decision to reduce the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), which is set to bring down the flight costs benefiting air carriers and consumers. 

Janata Dal (United) MP Sanjay Kumar Jha, while announcing the measure, lauded Bihar Chief Minister Nitish Kumar after the state cabinet reduced VAT on airline fuel from 29 per cent to just 4 per cent.

He added that the VAT on ATF for flights under the Regional Connectivity Scheme (RCS) will remain unchanged at 1 per cent.

In a post on X, Jha termed it a major boost for Bihar's aviation sector.

"The Bihar Cabinet has taken a landmark step by reducing VAT on Aviation Turbine Fuel (ATF) from 29% to just 4%. For flights under the Regional Connectivity Scheme (RCS), the VAT rate remains unchanged at 1%. Heartfelt gratitude to CM Nitish Kumar Ji for this progressive decision, one that will encourage more airlines to operate in the state and make air travel more accessible and affordable," Sanjay Jha said.

A major boost for Bihar’s aviation sector! ✈️

The Bihar Cabinet has taken a landmark step by reducing VAT on Aviation Turbine Fuel (ATF) from 29% to just 4%. For flights under the Regional Connectivity Scheme (RCS), the VAT rate remains unchanged at 1%.

Heartfelt gratitude to… pic.twitter.com/XLKtmcuHEp

— Sanjay Kumar Jha (@SanjayJhaBihar) June 3, 2025

"This reform is expected to significantly boost the number of flights from Patna, Darbhanga, and Gayaji, enhancing Bihar's air connectivity and opening new avenues for tourism, trade, and growth," the JD(U) MP said.

Bihar Chief Minister Nitish Kumar on Tuesday chaired a high-level cabinet meeting and approved 47 key proposals, including large-scale infrastructure projects, new government job openings, and significant policy decisions.

The Bihar Cabinet approved the creation of 4,858 new posts across various government departments to improve administrative efficiency and public service delivery.

Rs 1,320 crore plan was approved for setting up a sewerage network project in Sasaram, Aurangabad, and Siwan.

In addition, a Rs 328 crore water supply scheme received clearance for Ara, Siwan, and Sasaram cities, aiming to boost urban utility services.

The cabinet also approved a new Bridge Maintenance Policy, which would ensure regular inspection, safety checks, and timely repairs of bridges across the state.

Meanwhile, the newly constructed terminal building of Jayprakash Narayan International Airport was also to the public on Tuesday.

The two-storey terminal, with arrivals on the ground floor and departures on the first, is built to accommodate 3,000 passengers at peak hours.