Kerala government to sign agreement with MoCA to operate flights under RCS

The Kerala government is expected to sign an agreement with the MoCA soon to operate flights under the RCS. Under the scheme, state governments are stipulated to lower the existing value added tax (VAT) levied on aviation turbine fuel (ATF) to 1 per cent or less, besides providing security and fire services free of cost, and electricity, water and other utilities at concessional rates. In line with the stipulations, the Kerala government has already trimmed its VAT on ATF by 5 per cent from the existing 28.75 per cent, thereby providing the necessary impetus for the execution of the scheme.