In a bid to incentivise airlines to operate from the state, Arunachal Pradesh government on April 12 announced a major reduction in Value Added Tax (VAT) on air turbine fuel.
The state government has reduced the VAT on air turbine fuel from the existing 20 per cent to 1 per cent.
“The Governor of Arunachal Pradesh is hereby, pleased to reduce the rate of tax in respect of Air Turbine Fuel (ATF) for all categories of service from 20 per cent to 1 per cent,” a notification said.
The reduction in VAT on the aviation fuel is expected to help air connectivity and incentivise civil carriers in the border Northeast India state.
At present, limited air connectivity is offered through fixed wing flights at Pasighat and Tezu in Arunachal Pradesh.
Meanwhile, work in progress full-fledged greenfield airport at Hollongi near state capital Itanagar is reportedly set to get operationalised on Independence Day 2022, well ahead of its November 2022 date of completion.