Bihar slashes VAT on aviation turbine fuel to 4 per cent

    Patna, Jun 3 (PTI) The Bihar Cabinet on Tuesday approved a proposal for reducing value-added tax (VAT) on aviation turbine fuel (ATF) from 29 per cent to 4 per cent, Deputy Chief Minister Samrat Choudhary said.
    The state Cabinet meeting, chaired by Chief Minister Nitish Kumar, approved the proposal of the Commercial Tax department to reduce VAT on ATF to attract more commercial flights.
    In a statement issued after the cabinet meeting, Choudhary said, "The Cabinet approved the reduction of VAT on ATF from 29 per cent to 4 per cent under the Regional Connectivity Scheme (RCS). With this decision of the government, the air ticket prices will further reduce and attract more commercial fights in the state. It will further enhance the state's revenue and will also generate employment."
    Earlier, 4 per cent VAT on ATF was applicable at Gaya airport only, Choudhary who also holds the finance portfolio said, adding now the reduced rate will be applicable at all airports in the state.
    "This was also done with the objective of promoting tourism in the state. Bihar is home to many tourist destinations and is visited by a large number of tourists from all over the world. The decision has been taken following the request of the central government. The Ministry of Civil Aviation had requested the state government to reduce VAT to 4 per cent on ATF," said the deputy CM.
    The cabinet also gave its nod for filling up 4,799 posts of various categories in various government departments.

    "A maximum of 2,361 posts of different categories have been created in the education department, followed by 1,350 posts in the Urban Development and Housing department. The decision to create these posts will help in carrying out micro monitoring of schools right from primary to higher secondary level to ensure quality education in the state", S Siddharth, Additional Chief Secretary (ACS- Cabinet Secretariat), told reporters after the Cabinet meeting.

    Besides, 653 posts were created in Bihar State Jeevika Fund Credit Cooperative Federation Ltd, Patna, constituted under the Bihar Cooperative Society Act 1935, the ACS said.
    The Cabinet also gave its nod to the Urban Development and Housing Department's proposal to expand the area of municipal councils of Phulwarisharif, Danapur nizamat and Khagaul in Patna district, said the official.

    It would enable residents to get facilities provided by urban local bodies, he said adding the move would expand the urban areas.

    The decision would extend Phulwarisharif's municipal area by 16.51 square km while Danapur's 23.14 sq km and Khagaul's 9.4 sq km, he added.

(This story has not been edited by THE WEEK and is auto-generated from PTI)