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The Haryana government has decided to reduce value added tax (VAT) rate on sale of aviation turbine fuel (ATF) to 1% from 20%. The decision was announced by Haryana Chief Minister Manohar Lal Khattar on Wednesday.

Earlier today, CM Khattar met Union Civil Aviation Minister Jyotiraditya Scindia. Chief Minister of Haryana has approved the reduction of VAT levied by the state on air turbine fuel by 1%, Scindia said, adding, "I am grateful to them from my heart."

This important decision of the Government of Andaman and Nicobar, Uttarakhand, Jammu and Kashmir and Haryana will give a new impetus to the growth of air connectivity in these states, the Civil Aviation Minister noted.

Scindia had in August urged 22 states and Union territories to reduce VAT on ATF and bring it within the range of 1-4% across all airports in order to give an impetus to air travel.

"The price of ATF is a major component of the operating cost of airlines. With that, the tax on ATF contributes significantly to the ATF price," a statement issued by the the Ministry of Civil Aviation had noted.

The aviation industry has been significantly hit due to the travel restrictions imposed to curb the spread of the Covid-19 within and outside India.

The 22 states and UTs to which Scindia had written the letter were -- Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Rajasthan, Tamil Nadu, Tripura, Uttarakhand, Uttar Pradesh, Jammu and Kashmir, Delhi, Ladakh, the Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu.

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