Union Minister Piyush Goyal Urges Congress-Governed States to Reduce VAT on Aviation Turbine Fuel

Union Commerce Minister Piyush Goyal Calls for States to Follow Maharashtra's VAT Reduction on Aviation Fuel

Union Commerce Minister Piyush Goyal on Friday urged Congress governments in Kerala, Karnataka, and Telangana to adopt the BJP-led Maharashtra government's decision to reduce value-added tax (VAT) on aviation turbine fuel (ATF).

Goyal made the request during a press conference at the Special Economic Zone (SEEPZ) in Mumbai, where he emphasized the importance of taking austerity measures to support the country during times of crisis. The Union minister expressed his hope that the Congress-ruled states will also consider reducing VAT on ATF, which will help reduce air freight charges and benefit exporters.

The reduction in VAT on ATF from 18% to 7% in Maharashtra, led by Chief Minister Devendra Fadnavis, is expected to have a positive impact on the country's economy. This move will not only reduce air freight charges but also attract tourists and support exporters who are looking to explore new markets.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Goyal also responded to a question about the possibility of restrictions on the liberalized remittances scheme (LRS) as part of austerity measures to conserve foreign exchange. He clarified that Prime Minister Narendra Modi's appeal for austerity measures is voluntary and encouraged all Indians to contribute to nation-building during this challenging time.

The Union minister welcomed the recent decision to increase fuel prices by Rs 3, citing the initial rumors of a hike of over Rs 15 per litre. Goyal also announced that the Union Commerce Ministry is planning to consolidate its presence in Mumbai, with a view to renting out empty spaces to generate additional revenue.

At present, there are 20 offices of 12 organizations under the Ministry scattered across the city, with some offices being thinly staffed. The Ministry has already leased out space to the Maharashtra government entity MITRA, yielding Rs 2 crore per year in rent.

Goyal also highlighted the need for redevelopment in the SEEPZ area, where many buildings are nearly 50 years old. The zone in the western suburbs is expected to undergo a major redevelopment drive in the near future.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline