+
Bihar Slashes Aviation Fuel Tax to 4 Per Cent
AVIATION & AIRPORTS

Bihar Slashes Aviation Fuel Tax to 4 Per Cent

In a major push to improve air connectivity and promote tourism, the Bihar Cabinet, led by Chief Minister Nitish Kumar, has approved a sharp reduction in value-added tax (VAT) on aviation turbine fuel (ATF) from 29 per cent to 4 per cent. Previously applicable only at Gaya airport, the revised rate will now extend to all airports in the state.
The move is designed to encourage airlines to operate more commercial flights in Bihar, reduce airfare, and align with the Central Government’s Regional Connectivity Scheme (RCS), which aims to make air travel more affordable and widespread.
Bihar, home to prominent heritage and religious sites like Bodh Gaya, Rajgir, and Nalanda, expects the fuel tax cut to incentivise domestic and international carriers to expand operations. Increased flight frequency is projected to boost tourist inflow, stimulate the local economy, and create job opportunities.
Deputy Chief Minister Samrat Choudhary highlighted the wide-ranging benefits, stating, “This decision will lower ticket prices, attract more commercial flights, enhance revenue, and generate employment across the state.”
The Ministry of Civil Aviation had earlier urged state governments to bring VAT on ATF down to 4 per cent in order to support the growth of regional air networks under the RCS framework.

In a major push to improve air connectivity and promote tourism, the Bihar Cabinet, led by Chief Minister Nitish Kumar, has approved a sharp reduction in value-added tax (VAT) on aviation turbine fuel (ATF) from 29 per cent to 4 per cent. Previously applicable only at Gaya airport, the revised rate will now extend to all airports in the state.The move is designed to encourage airlines to operate more commercial flights in Bihar, reduce airfare, and align with the Central Government’s Regional Connectivity Scheme (RCS), which aims to make air travel more affordable and widespread.Bihar, home to prominent heritage and religious sites like Bodh Gaya, Rajgir, and Nalanda, expects the fuel tax cut to incentivise domestic and international carriers to expand operations. Increased flight frequency is projected to boost tourist inflow, stimulate the local economy, and create job opportunities.Deputy Chief Minister Samrat Choudhary highlighted the wide-ranging benefits, stating, “This decision will lower ticket prices, attract more commercial flights, enhance revenue, and generate employment across the state.”The Ministry of Civil Aviation had earlier urged state governments to bring VAT on ATF down to 4 per cent in order to support the growth of regional air networks under the RCS framework.

Next Story
Infrastructure Energy

L&T to Build India’s Largest Green Hydrogen Plant for IOCL

The plant will be developed on a build-own-operate (BOO) model and will supply 10,000 tonnes of green hydrogen annually to IOCL for a period of 25 years. It will operate entirely on renewable energy, aligning with IOCL’s decarbonisation goals and India’s broader net-zero ambitions.Green hydrogen at the plant will be produced using high-pressure alkaline electrolysers manufactured at L&T Electrolysers Ltd’s facility in Hazira, Gujarat. This initiative further showcases L&T’s commitment to localised, self-reliant clean-tech solutions under the Aatmanirbhar Bharat mission.LTEG’s..

Next Story
Infrastructure Urban

Bansal Wire Q1 Profit Rises 24.6% to Rs 393 Mn

Bansal Wire Industries, India’s largest stainless steel wire manufacturer and second-largest steel wire maker by volume, reported a 24.6 per cent year-on-year rise in net profit to Rs 393 million for the quarter ended June 30, 2025 (Q1 FY26).During the quarter, revenue rose 14.9 per cent YoY to Rs 9,390 million, while EBITDA increased by 19.6 per cent YoY to Rs 745 million, reflecting the company's strong operational performance and focus on value-added segments.According to Pranav Bansal, MD & CEO of Bansal Wire Industries, the company has started FY26 on a strong note, building on the ..

Next Story
Infrastructure Urban

Lemon Tree Opens Keys Lite Hotel in Banswara, Rajasthan

Lemon Tree Hotels has launched its latest property, Keys Lite by Lemon Tree Hotels, Banswara, further expanding its footprint in Rajasthan. This marks the group’s 11th operational hotel in the state and continues its focus on providing quality stays in emerging travel destinations.The newly launched managed hotel features 54 well-appointed rooms, a multi-cuisine restaurant – Keys Café, a fitness centre, and spacious banquet and conference facilities, catering to both leisure and business travellers.Located in southern Rajasthan, Banswara is known as the “City of Hundred Islands” for t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?