Mumbai: Union Commerce Minister Piyush Goyal on Friday called on Congress-ruled states Kerala, Karnataka and Telangana to follow Maharashtra in reducing value added tax (VAT) on aviation turbine fuel (ATF).

Speaking to reporters at SEEPZ, he said the austerity measures suggested by Prime Minister Narendra Modi are voluntary and urged what he described as “patriotic” participation in times of 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 Goyal, who is also Mumbai North Lok Sabha MP.

Maharashtra VAT cut and impact on aviation costs

The senior BJP leader praised Maharashtra Chief Minister Devendra Fadnavis for cutting VAT on ATF to 7 per cent from 18 per cent. He said the move would reduce air freight charges, support exporters seeking new markets, and help attract tourists.

Austerity appeal and ministry restructuring plans

Responding to questions on whether restrictions under the liberalised remittance scheme (LRS) were being considered as part of forex-saving measures, Goyal said PM Modi’s appeal was voluntary in nature.

“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.

On the Rs 3 fuel price hike announced earlier, he said the decision should be welcomed under PM Modi, claiming there had been rumours of an increase of over Rs 15 per litre.

Goyal also said the Commerce Ministry is reviewing its footprint in Mumbai and plans to consolidate offices into fewer locations, with surplus space to be leased out.

He said the ministry currently has 20 offices of 12 organisations spread across the city, with some units thinly staffed.

He cited the Export Credit Guarantee Corporation leasing space to Maharashtra government body MITRA, generating Rs 2 crore annually in rent.

He also said several buildings in SEEPZ are nearly 50 years old and that the western suburbs export zone is set for major redevelopment.