Scindia urges States, UTs to reduce VAT on jet fuel to increase air traffic

New Delhi: Union Minister for Civil Aviation, Jyotiraditya Scindia has urged the states and Union Territories to reduce the value-added tax (VAT) on jet fuel as it will help in increasing air traffic.

Speaking at a conference of the ministers of civil aviation from states & UTs in Delhi on Friday, Scindia said that there is a need for 9,500 pilots.

He also said that we need 9,500 pilots and over 40 per cent of pilots go abroad for training.

"At present, we need 9,500 pilots. Over 40% of pilots go abroad for training. Again there is forex outgo. The training cost of a pilot is around Rs 1.5-2 crore. We've to move flying/pilot training here," he said.

Earlier, Scindia has said that seven states and Union Territories have slashed their Value Added Tax on Aviation Turbine Fuel (ATF) and he expected other states to follow the suit.

"7 States & UTs slashed their VAT on ATF (Aviation Turbine Fuel) & I'm expecting more states to follow suit. With the current tax structure on ATF...you can't have a robust civil aviation sector. I'm very clear on that," the union minister said on Thursday while inaugurating a curtain raiser event about Wings India, 2022 which is Asia's largest event on Civil Aviation.

Speaking on the occasion, Scindia said that the Indian Civil Aviation industry has witnessed robust growth over the years and contributes significantly to the economic development of the country. It is bringing people from across the world to discover the huge business and tourism opportunities in India, said the press release by the Ministry of Civil Aviation.

The Minister said that the Indian aviation industry has overcome many challenges to become one of the world's most lucrative aviation markets.

"India today handles the third-largest domestic traffic after the USA and China. We all know that in this densely globalized economy, air transport is a key element in the country's transport infrastructure and plays an important role in the Country's economic growth," he said.