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Friday, January 28, 2022

Karnataka reduces tax on Aviation Turbine Fuel from January 1

This comes a week after the Indian Oil Corporation (IOC) reduced ATF prices. The government’s move to reduce ATF price is expected to help airlines operating out of the Bengaluru airport.

By: Express News Service | Bengaluru |
December 23, 2021 2:10:55 pm
The officials said there were total 285 passengers on the charter flight that landed on Friday. (Representational image)

The Karnataka government Wednesday announced a reduction of the tax levied on Aviation Turbine Fuel (ATF) from the existing 28% to 18% with effect from January 1, 2022. A notification to the tune was issued by the Finance Department.

This comes a week after the Indian Oil Corporation (IOC) reduced ATF prices. The government’s move to reduce ATF price is expected to help airlines operating out of the Bengaluru airport.

Meanwhile, seven states have already reduced the value added tax (VAT) on ATF under four per cent. In August, Union Civil Aviation Minister Jyotiraditya Scindia had written to 22 state governments in the country urging them to reduce VAT on jet fuel by 1-4 per cent to give impetus to the aviation sector.

The Karnataka government levies three kinds of rates on ATF — 1 per cent tax for flights under the Regional Connectivity Scheme; flights that weigh under 40,000 kg are levied 5 per cent tax; while all other aircraft are charged 28 per cent tax.

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