VAT cut on aviation turbine fuel boosts flight operations from Jaipur

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Rajasthan government’s decision to reduce Value Added Tax (VAT) on aviation turbine fuel from 26 to 2 per cent in its new budget 2023-24 has enabled the private airline operators to run new flights to a dozen cities in the country.

Jaipur International Airport is all geared up to expand the air connectivity by introducing new flights to more than half a dozen new cities of India. In the coming summer schedule, flights connecting to seven Indian cities and one international destination have been proposed by different airlines.

Supporting the expansion of air-connectivity is the state government’s decision to reduce VAT on aviation turbine fuel from 26 to 2 per cent that will be a game changer in boosting the regional connectivity and movement of non-scheduled aircrafts here in the coming financial year.

New flights connecting Bareilly, Belgaum, Pant Nagar, Nagpur, Ranchi and Patna are likely to start in coming summers, according to a Jaipur International Airport Ltd (JIAL) official here today.

One international flight connecting Kuala Lumpur is also proposed. These flights will be operated by Indigo, Star Air and Air Asia. Flights for Jodhpur and Udaipur are already in operation. Addition of the new destinations will provide more convenience and ease to passengers travelling from Jaipur.

Most airlines operators and stakeholders with Jaipur airport are elated over the government’s decision to reduce VAT on aviation turbine fuel. Expressing gratitude to the state government, the airline official said, ”Earlier, VAT on ATF was very high at 26 per cent, when fuel is cheaper, it will certainly boost air traffic by all means. It will generate new opportunities for stakeholders and provide more choices and convenience to passengers”.

Presently, on an average 62 flights are operating from Jaipur airport on a daily basis. In the last six months Dubai, Sharjah and Muscat held the spot as the top three international destinations from Jaipur whereas Mumbai, Kolkata and Delhi continue to retain their position as the top three domestic destinations.