Bihar Slashes Aviation Fuel Tax to 4 Per Cent
05 Jun 2025
2 Min Read
CW Team
In a major push to improve air connectivity and promote tourism, the Bihar Cabinet, led by Chief Minister Nitish Kumar, has approved a sharp reduction in value-added tax (VAT) on aviation turbine fuel (ATF) from 29 per cent to 4 per cent. Previously applicable only at Gaya airport, the revised rate will now extend to all airports in the state.
The move is designed to encourage airlines to operate more commercial flights in Bihar, reduce airfare, and align with the Central Government鈥檚 Regional Connectivity Scheme (RCS), which aims to make air travel more affordable and widespread.
Bihar, home to prominent heritage and religious sites like Bodh Gaya, Rajgir, and Nalanda, expects the fuel tax cut to incentivise domestic and international carriers to expand operations. Increased flight frequency is projected to boost tourist inflow, stimulate the local economy, and create job opportunities.
Deputy Chief Minister Samrat Choudhary highlighted the wide-ranging benefits, stating, 鈥淭his decision will lower ticket prices, attract more commercial flights, enhance revenue, and generate employment across the state.鈥�
The Ministry of Civil Aviation had earlier urged state governments to bring VAT on ATF down to 4 per cent in order to support the growth of regional air networks under the RCS framework.
In a major push to improve air connectivity and promote tourism, the Bihar Cabinet, led by Chief Minister Nitish Kumar, has approved a sharp reduction in value-added tax (VAT) on aviation turbine fuel (ATF) from 29 per cent to 4 per cent. Previously applicable only at Gaya airport, the revised rate will now extend to all airports in the state.The move is designed to encourage airlines to operate more commercial flights in Bihar, reduce airfare, and align with the Central Government鈥檚 Regional Connectivity Scheme (RCS), which aims to make air travel more affordable and widespread.Bihar, home to prominent heritage and religious sites like Bodh Gaya, Rajgir, and Nalanda, expects the fuel tax cut to incentivise domestic and international carriers to expand operations. Increased flight frequency is projected to boost tourist inflow, stimulate the local economy, and create job opportunities.Deputy Chief Minister Samrat Choudhary highlighted the wide-ranging benefits, stating, 鈥淭his decision will lower ticket prices, attract more commercial flights, enhance revenue, and generate employment across the state.鈥漈he Ministry of Civil Aviation had earlier urged state governments to bring VAT on ATF down to 4 per cent in order to support the growth of regional air networks under the RCS framework.
Next Story
South West Pinnacle Wins Rs 30 Cr Oman Mining Contract
South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman鈥檚 investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle鈥檚 growing footprint in international exploration and mining services.
..
Next Story
Godrej GEG Boosts Intralogistics with AI and Green Tech
Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20鈥�25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..
Next Story
Amit Shah Inaugurates Key Projects Across Gujarat
Union 亚博体育官网首页 Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat鈥檚 Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state.
..
