The Telangana government is planning to make Hyderabad a base for low-cost airlines by slashing sales taxes on airline fuel. Bringing down sales tax on Aviation Turbine Fuel (ATF) will encourage more airlines to set up base in Hyderabad, add more air connectivity, drive more economic activity and promote tourism in the state. The value-added tax on jet fuel currently stands at 16% and slashing it to 4% will make Telangana among the few Indian states to do so. States that reduced tax on jet fuel include Gujarat, Orissa, Madhya Pradesh, Chhattisgarh and West Bengal. The ATF slash could be clubbed with other promotion programs which would aim at increasing the aviation activity by encouraging the airlines’ throughput. Similar exercise in Bangalore ...

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