Bihar Lowers VAT on Aviation Turbine Fuel to Boost Tourism and Economy

In a move to attract more commercial flights and boost tourism, the Bihar Cabinet has approved a significant reduction in value-added tax (VAT) on aviation turbine fuel (ATF) from 29% to 4%. The decision was confirmed by Deputy Chief Minister Samrat Choudhary during a cabinet meeting chaired by Chief Minister Nitish Kumar.

The reduced VAT rate will now be applicable at all airports across the state, expanding from its previous application solely at Gaya airport. This initiative aligns with the state's efforts to enhance regional connectivity under the Central Government's scheme, with the Ministry of Civil Aviation having requested the tax decrease.

Additionally, the Cabinet sanctioned the expansion of municipal areas in Patna district and the creation of 4,799 new posts in various departments, primarily within the education and urban development sectors, to support quality education and urban expansion.

(With inputs from agencies.)