Patel said reducing tax on ATF will make the airfare cheaper, ultimately benefitting the passenger and the aviation industry.

"Intra-state air connectivity is something we are planning with support from the state government's and reducing tax on ATF will only benefit the plan," Patel said.

Since Gujarat has well developed infrastructure, air connectivity between small cities seemed the next logical step, he said.

"We have talked to Chief Minister Narendra Modi and he has assured us full support in developing the facility."

Patel was speaking at the inauguration of the new domestic arrival building at the Sardar Patel International Airport here.

He was accompanied by Modi, Leader of Opposition in state Assembly Shaktisinh Gohil and top officials of the Airports Authority of India in Ahmedabad.

Patel said some states have already slashed sales tax on ATF. "Andhra Pradesh has reduced sales tax on ATF from 33 per cent to 4 per cent, whereas Kerala has dropped it to 4 per cent from 29 per cent," Patel said.

"Maharashtra too has reduced it by 4 per cent, except in Mumbai," he added.