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"Major boost for Bihar's aviation sector": Sanjay Jha praises CM Nitish after cabinet reduced VAT on Aviation Turbine Fuel

"Major boost for Bihar's aviation sector": Sanjay Jha praises CM Nitish after cabinet reduced VAT on Aviation Turbine Fuel

India Gazette03-06-2025
Patna (Bihar) [India], June 3 (ANI): Janata Dal (United) MP Sanjay Kumar Jha, on Tuesday, praised Bihar Chief Minister Nitish Kumar after state cabinet reduced Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 29 per cent to just 4 per cent.
In a post on X, Jha termed it a major boost for Bihar's aviation sector.
'The Bihar Cabinet has taken a landmark step by reducing VAT on Aviation Turbine Fuel (ATF) from 29% to just 4%. For flights under the Regional Connectivity Scheme (RCS), the VAT rate remains unchanged at 1%. Heartfelt gratitude to CM Nitishumar Ji for this progressive decision, one that will encourage more airlines to operate in the state and make air travel more accessible and affordable,' Sanjay Jha said.
'This reform is expected to significantly boost the number of flights from Patna, Darbhanga, and Gayaji, enhancing Bihar's air connectivity and opening new avenues for tourism, trade, and growth,' the JD(U) MP said.
Bihar Chief Minister Nitish Kumar chaired a high-level cabinet meeting on Tuesday and approved 47 key proposals, including large-scale infrastructure projects, new government job openings, and significant policy decisions.
The Bihar Cabinet approved the creation of 4,858 new posts across various government departments to improve administrative efficiency and public service delivery.
Among the major infrastructure decisions, a Rs 1,320 crore plan was approved for setting up a sewerage network project in Sasaram, Aurangabad, and Siwan.
In addition, a Rs 328 crore water supply scheme received clearance for Ara, Siwan, and Sasaram cities, aiming to boost urban utility services.
The cabinet also approved a new Bridge Maintenance Policy, which would ensure regular inspection, safety checks, and timely repairs of bridges across the state.
In a move expected to improve air connectivity, the Value-Added Tax (VAT) on Aviation Turbine Fuel (ATF) in Bihar was reduced from 29 per cent to 4 per cent.
A proposal to build a dry dock in Dujra, Patna, was also approved. The facility will be used to repair aircraft, making it the first such unit in the region.
In a significant step towards women's empowerment, the cabinet decided that 'Jeevika Didis' (members of the state's women's self-help groups) would prepare clothes for children at Anganwadi centres.
The area of Phulwari Sharif, Danapur, and Khagol near the capital of Patna will be expanded, and many villages will become part of these cities. (ANI)
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