Overview

• The Bihar Cabinet, chaired by Chief Minister Nitish Kumar, approved the VAT reduction from 29% to 4% effective immediately at all state airports.
• The move comes under the Centre’s Regional Connectivity Scheme after a formal request from the Ministry of Civil Aviation.
• Officials say the lower fuel tax will help reduce air ticket prices and attract more commercial flights to Bihar.
• The policy aims to improve access to major hubs like Patna and Gaya and strengthen the state’s appeal to domestic and international tourists.
• Authorities expect the tax cut to increase state revenues and generate employment in the aviation and tourism sectors.