The Kerala government today decided to reduce the VAT rate on aviation turbine fuel (ATF) by five per cent from the existing 28.75 per cent for a period of five years.
The Centre had requested states to reduce the VAT rate on ATF by one per cent, to encourage flight services connecting important cities in the country.
But, with a view to providing extra motivation, the state decided to reduce VAT rate by five per cent, an official release said here.
A cabinet meeting chaired by Chief Minister Pinarayi Vijayan took the decision.
The cabinet also decided to appoint V S Senthil, additional chief secretary (planning), who is retiring on September 30, as Chief Minister's Principal secretary (Co-ordination).
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