VAT rate cut on ATF, fuel consumption increased 134% at Patna Airport

VAT rate cut on ATF. (File photo)

Jayaprakash Narayan of Patna has been ready in a grand form with the new collector of International Airport. When the airport had an old terminal building, around 80 airplanes were moved daily for other major cities including Delhi, Kolkata, Guwahati, Lucknow. Now after the new terminal building is ready, the number of airplanes coming and going daily has exceeded 100.

The state government has taken a historic decision in June this year to promote aircraft operations. The state cabinet had approved this decision. Under this, the rate of VAT (Value Adde Tax) on the ATF (air turbine fuel) to be filled in aircraft was reduced from 29 percent to 4 percent.

134 percent increase in ATF sales

Its effect is also visible on a large scale. Compared to last year, there has been a 134 percent increase in ATF sales. According to the data received from the Commerce Tax Department, when the VAT rate on ATF was 29 percent, then in May 2024, the aviation companies from Patna Airport procured 2318.20 kiloliter ATF.

VAT rate on ATF 4 percent

In May this year, compared to last year, it recorded a normal increase of only 44 per cent and its sales figure reached 3337.98 kg. At the same time, if you look at the VAT rate of 4 percent on ATF, then you will find that in June 2024, ATF was sold at 2526.41 kiloliters. As soon as the new rate is implemented, a historic increase of 134 percent has been recorded in ATF sales. It has reached 5920.38 kiloliters. It is likely to increase more in the coming time.

Inauguration of state -of -the -art terminal building

It is worth noting that on May 30, Prime Minister Narendra Modi and Chief Minister Nitish Kumar inaugurated the new state -of -the -art terminal building of Jayaprakash Narayan International Airport of Patna. This terminal, developed at a cost of Rs 1,200 crore, is spread over 65,150 square meters and has a capacity of one crore passengers annually.

Along with this, the number of airplanes operations is likely to increase by several times. Along with this, the number of operations of airplanes will also increase significantly. The cut in the rate of ATF will be the biggest incentive in this.