Goyal asks Cong-ruled Karnataka, Kerala and Telanagana to cut VAT on ATF

Union Commerce Minister Piyush Goyal on Friday (May 15) asked Congress governments in Kerala, Karnataka and Telangana to follow the BJP-led Maharashtra government in cutting Value Added Tax (VAT) on Aviation Turbine Fuel (ATF).

Speaking to reporters at the Santacruz Electronics Export Processing Zone (SEEPZ) in Mumbai, Goyal said the austerity measures suggested by Prime Minister Narendra Modi are voluntary in nature, and added that every patriotic Indian should help in times of a crisis.

"I hope that the few states where the Congress continues to be in power - Karnataka, Kerala and Telangana will also look into this (ATF) issue and take up the challenge of undertaking pro-people measures," said the Union minister, who is also Mumbai North's Lok Sabha MP.

Congratulates Devendra Fadnavis

The senior BJP leader congratulated Maharashtra Chief Minister Devendra Fadnavis for cutting VAT on ATF to 7 per cent from the earlier 18 per cent, pointing out that this will reduce air freight charges, assist exporters who are traveling in search of newer markets and also attract tourists. Replying to a specific question on whether there is a move to put restrictions on liberalized remittances scheme (LRS) as part of austerity measures for saving forex, Goyal explained that Modi's appeal is voluntary.

Also Read: BJP defends Rs 3 fuel hike, says India shielded its citizens better than global peers

"He has made an appeal, he has made a request and I am sure all of you also will be having a feeling for the country that patriotism, that we must all contribute to nation building," he said. "This is the time when there is a crisis when we all tighten our belt," the Union minister added.

Commenting on the Rs 3 fuel hike announced earlier in the day, the Union Minister said we must welcome the decision under PM Modi because there were rumours of a hike of over Rs 15 per litre.

Goyal also said the Union Commerce Ministry is looking to consolidate its presence in the financial capital into fewer locations and added that the space that is vacated can be rented out.

At present, there are 20 offices of 12 organisations under the Ministry which are scattered across the city, and in some cases, the offices are thinly staffed. He cited the leasing out of a space by the Export Credit Guarantee Corporation to Maharashtra government entity MITRA, which is yielding the former Rs 2 crore per year as rent. Goyal also said many of the buildings in SEEPZ are nearly 50 years old and the zone in the western suburbs will see a major redevelopment drive.