Jyotiraditya Scindia Urges States To Reduce Tax On Jet Fuel

Civil Aviation Minister Jyotiraditya Scindia has urged state governments to cut taxes on jet fuel amid an increase in air travel.

New Delhi: Union Civil Aviation Minister, Jyotiraditya Scindia while speaking at the Civil Aviation Minister's conference in New Delhi, urged eight states and Union Territories to reduce the tax on jet fuel as the demand for air travel has shot up significantly after the Covid-19 pandemic. He emphasized the need for developing airport infrastructure in smaller cities as they are expected to drive the growth of air traffic. 

The daily passenger number has crossed the mark of four lakh, as the domestic air traffic inches closer to the Pre-COVID level.

The range of Value Added Tax (VAT) on jet fuel in eight states and Union Territories is still high i.e., in the range of 20-30 per cent. He has asked the states such as Goa, Assam, Delhi, Maharashtra, West Bengal, Rajasthan, Bihar, Tamil, and Nadu Union Territories to reduce the taxes to some extent at least and also emphasised the need to bring down entry barriers in the context of high VAT on jet fuel in some states. A significant part of an airline's operational cost is made up of jet fuel costs. 

Currently, 28 states and Union Territories have VAT on jet fuel in the range of 1-4 per cent, he added.

He used the term "towering phoenix" to describe the nation's civil aviation sector. He also said that it has been operating seamlessly in a high-demand environment compared to issues faced by travellers and airports in different parts of the world. He said that civil aviation must be for the common man and not just for the chosen few.

There are 141 operational airports right now, including heliports and waterdromes. The minister announced the establishment of 15 more Flying Training Organizations (FTOs) for the industry. There are now close to 34 FTOs. He stated that the European company Safran will invest about $150 million to build an aircraft engine maintenance plant in India.

Gen (Retd) V K Singh, Union Minister of State for Civil Aviation, stated during the conference that helipads have to be constructed in each district.

On October 11, Prime Minister Narendra Modi referred to the number of daily domestic air travellers approaching the pre-COVID level as a "great sign" and stated that the emphasis is on enhancing connectivity throughout the nation.

(With inputs from PTI)