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Bihar Slashes Aviation Fuel VAT to Zero to Boost Regional Air Connectivity
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CNBC TV18•30-09-2026, 20:56
Bihar Slashes Aviation Fuel VAT to Zero to Boost Regional Air Connectivity
- •The Bihar government has eliminated VAT on aviation turbine fuel (ATF) under the Regional Connectivity Scheme (RCS), reducing it from 1% to zero.
- •This decision, approved by the cabinet chaired by Chief Minister Samrat Choudhary, aims to enhance air connectivity and support flight operations across the state.
- •Previously, the VAT rate on ATF was reduced from 29% to 4% uniformly in June 2025, with the RCS rate already at 1% since 2018.
- •The cabinet also approved the "Bihar Green Hydrogen Policy, 2026" to promote renewable energy, reduce import dependence, and attract investment.
- •Additionally, the government sanctioned the purchase of 30 ADR water cannons for law and order at ’88 lakh each, and 86 new vehicles for crowd control and dignitary movements.
Key Questions Answered
The Bihar government reduced the value-added tax (VAT) on aviation turbine fuel (ATF) from 1% to zero under the Regional Connectivity Scheme (RCS) to boost regional air operations.
The cabinet approved the Bihar Green Hydrogen Policy, 2026, to promote renewable energy, lower natural gas import dependence, cut carbon emissions, attract private investments, and generate employment.
The Bihar cabinet gave administrative approval to purchase 30 ADR water cannons at ₹88 lakh per cannon, totaling ₹26.40 crore, to strengthen law and order enforcement in the state.
