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 encourageflight 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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