The Jammu and Kashmir government plans to revise taxes on the Aviation Turbine Fuel (ATF) to bring down the cost of air travel in the state.
"From a larger perspective of cutting down the cost of air travel into Jammu and Kashmir, there is a general view that the rates of tax on the ATF need to be revised. The matter shall be looked into by the finance department in an appropriate manner," state Finance Minister Haseeb Drabu informed the Assembly in a written reply.
Nawang Rigzin Jora had asked "whether it is a fact that the cost of aviation turbine fuel (ATF) in the state is the highest in the entire country as a result of Taxes levied in the state making the air fares more expensive given the flight durations viz a viz other routes in the country, if so, whether the government intends to cut down the taxes to make the fares justifiable".
The finance minister replied that the tax rates in 10 other states of the country were much higher as compared to Jammu and Kashmir's.
"The rate of tax on Aviation turbines fuel (ATF) is 20 per cent with five per cent surcharge under the J&K GST 1962. This rate is comparable to many other states. In fact 10 states have higher rates of tax as compared to the J&K state," he said.
He said that a toll tax at the cost of Rs 65 per quintal was also being charged on the ATF, "Moreover, the toll is levied on the import of aviation turbine fuel at Rs 65 per quintal at the toll posts," he said.
