Patna: A drastic reduction in the value-added tax (VAT) on aviation turbine fuel (ATF) by the Bihar government has led to a dramatic surge in fuel sales at Patna’s Jayaprakash Narayan International Airport, with a 134% rise recorded year-on-year in June.
The VAT cut—from 29% to just 4%—was approved in a state cabinet meeting in June as part of efforts to boost air connectivity and attract more flights to the state capital. Data from the Commercial Tax Department indicates that the impact of the move has been immediate and significant.
In May 2024, before the tax cut came into effect, airlines lifted 2,318 kilolitres of ATF at Patna airport. In May 2025, that figure rose to 3,338 kilolitres, marking a 44% increase. The following month saw an even steeper rise: in June 2025, ATF sales jumped to 5,920 kilolitres, compared with 2,526 kilolitres in June 2024—a 134% year-on-year increase.
Officials say the policy is already delivering on its intended goal of incentivising airlines to refuel in Patna, potentially increasing flight frequency and reducing operational costs for carriers operating in the region.
The surge in ATF sales coincides with recent infrastructure upgrades at Patna airport. On May 30, Prime Minister Narendra Modi and Chief Minister Nitish Kumar inaugurated a new terminal building developed at a cost of Rs 1,200 crore. Spanning over 65,000 square metres, the terminal is equipped to handle up to 10 million passengers annually.
