The determination was introduced by Maharashtra Deputy CM Devendra Fadnavis whereas presenting the state Budget 2023-24.
With this, Maharashtra joins the league of complete 19 states/UTs which have rationalised VAT charges within the final 1.5 years
The Maharashtra authorities on Thursday introduced to scale back value-added tax (VAT) on jet gas, or aviation turbine gas (ATF), from 25 per cent to 18 per cent in Mumbai, Pune and Raigad. The determination was introduced by Maharashtra Deputy CM Devendra Fadnavis whereas presenting the state Budget 2023-24.
“I thank Maharashtra CM @mieknathshinde Ji & Depy CM @Dev_Fadnavis Ji for taking the progressive determination to scale back VAT on Air Turbine Fuel from 25 per cent to 18 per cent. In a state of affairs of excessive gas costs, this step will show to be a catalyst in our efforts to ramp up air connectivity,” Union Minister for Civil Aviation Jyotiraditya Scindia said in a tweet on Thursday.
I thank Maharashtra CM @mieknathshinde Ji & Depy CM @Dev_Fadnavis Ji for taking the progressive decision to reduce VAT on Air Turbine Fuel from 25% to 18%. In a scenario of high fuel prices, this step will prove to be a catalyst in our efforts to ramp up air connectivity.1/3
— Jyotiraditya M. Scindia (@JM_Scindia) March 9, 2023
In Maharashtra, except Mumbai, Pune and Raigad, VAT on ATF is 4 per cent. However, it was high at 25 per cent for Mumbai, Pune and Raigad. These cities account for considerable air traffic.
Scindia also said, “With this, Maharashtra joins the league of total 19 states/UTs that have rationalised VAT rates in the last 1.5 years. Alongside enhanced connectivity for Mumbai, Pune & Raigad, this will also make travel more affordable, and boost growth.”
Aviation turbine gas constitutes about 40 per cent of the price of airline operations.  On a mean, states earn as a lot as Rs 3,000 crore a 12 months from VAT.
Maharashtra Deputy Chief Minister Devendra Fadnavis, who can also be the state Finance Minister, on Thursday offered the Eknath Shinde-led authorities’s first Budget for the 12 months 2023-24 within the state Assembly.
During the funds presentation, Fadnavis mentioned the outlay for farmers has been elevated by Rs 6,900 crore and the protection of the Mahatma Phule Jan Arogya scheme, a medical insurance scheme of the federal government, has been raised from Rs 1.5 lakh to Rs 5 lakh.
State School Education Minister Deepak Kesarkar learn out the Budget proposals within the Legislative Council.
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