<p>Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday said there is a huge demand for air travel after the pandemic and urged eight states and Union Territories to reduce the tax on jet fuel.</p>.<p>Air traffic growth will be driven by smaller cities, he said while speaking at the Civil Aviation Ministers' conference in the national capital.</p>.<p>Domestic air traffic is inching closer to pre-Covid level and in recent times, the daily passenger numbers crossed the four lakh mark twice.</p>.<p>Scindia said that Value Added Tax (VAT) on jet fuel is still high in eight states and Union Territories in the range of 20-30 per cent and urged them to reduce the rate.</p>.<p>Jet fuel cost accounts for a significant part of an airline's operational costs.</p>.<p>The minister requested Goa, Assam, Delhi, Maharashtra, West Bengal, Rajashthan, Bihar and Tamil Nadu to reduce the VAT on Aviation Turbine Fuel (ATF).</p>.<p>"New growth to come from Tier 2 and 3 cities," he said and emphasised the need to bring down entry barriers in the context of high VAT on jet fuel in some states.</p>.<p>Currently, 28 states and Union Territories have VAT on jet fuel in the range of 1-4 per cent, he added. He described the country's civil aviation sector as a "towering phoenix", and operating seamlessly in a high-demand environment compared to issues faced by travellers and airports in different parts of the world. </p>
<p>Union Civil Aviation Minister Jyotiraditya Scindia on Tuesday said there is a huge demand for air travel after the pandemic and urged eight states and Union Territories to reduce the tax on jet fuel.</p>.<p>Air traffic growth will be driven by smaller cities, he said while speaking at the Civil Aviation Ministers' conference in the national capital.</p>.<p>Domestic air traffic is inching closer to pre-Covid level and in recent times, the daily passenger numbers crossed the four lakh mark twice.</p>.<p>Scindia said that Value Added Tax (VAT) on jet fuel is still high in eight states and Union Territories in the range of 20-30 per cent and urged them to reduce the rate.</p>.<p>Jet fuel cost accounts for a significant part of an airline's operational costs.</p>.<p>The minister requested Goa, Assam, Delhi, Maharashtra, West Bengal, Rajashthan, Bihar and Tamil Nadu to reduce the VAT on Aviation Turbine Fuel (ATF).</p>.<p>"New growth to come from Tier 2 and 3 cities," he said and emphasised the need to bring down entry barriers in the context of high VAT on jet fuel in some states.</p>.<p>Currently, 28 states and Union Territories have VAT on jet fuel in the range of 1-4 per cent, he added. He described the country's civil aviation sector as a "towering phoenix", and operating seamlessly in a high-demand environment compared to issues faced by travellers and airports in different parts of the world. </p>