AAP Government on Wednesday Announced the Delhi Budget which states that the Air travel from Delhi to remote areas will be now cheaper.
The Delhi Government in its budget has slashed the Value added tax or VAT on air turbine fuel (ATF) from existing 25% to one percent to complement the Centre’s regional connectivity scheme.
Delhi’s Deputy Chief Minister Manish Sisodia presented the National Capital’s budget 2017-18. He said that the cut in VAT on ATF will be applicable for direct flights between the state and remote areas identified under the RCS as per prescribed conditions.
He added the cut down of VAT will benefit people from the northeast and other remote areas as fares under RCS will come down significantly.
The regional connectivity scheme UDAN (‘Ude Desh Ka Aam Nagrik’) is aimed at promoting at connectivity to smaller cities. The scheme was launched last year but flights under it are yet to take off.
Mr Sisodia said, “We have decided to bring down VAT on ATF from 25 per cent to 1 per cent for flights to remote areas such as North Eastern states to support the Centre’s regional connectivity scheme”.
An official from the Civil Aviation Ministry said: “that though Delhi’s IGI airport is not an RCS airport, the concession has been extended by the Delhi government to support RCS on the ministry’s request.”
The airline companies have welcomed the move of Delhi government.
CMD of SpiceJet Airlines, Aja Singh said, “This is a welcome move, which will help reduce costs and, in turn, help bring down fares for flights to smaller airports in the country. We support all initiatives that help reduce fares for our consumers”.
On the other hand, Aditya Ghosh, president and whole-time director, IndiGo, said: “While this is a welcome move and it will provide the much-needed impetus to the Regional Connectivity Scheme, we do request that this tax break is broadened to all air travel out of Delhi.”