Centre has written to states to lower the VAT on Aviation Turbine Fuel (ATF) to check the prices of air tickets in the country. Replying to supplementaries during Question Hour in the Lok Sabha today on air ticket price, Civil Aviation Minister K Rammohan Naidu said, 45 percent of the air fare price is due to ATF and some states are levying 29 per cent VAT on this fuel. He said, some states have reduced the VAT on ATF to below five per cent, while Tamil Nadu is still charging the highest of 29 per cent VAT on the air fuel. He added that air fare is dynamic and it is based on demand. Mr Naidu clarified that the government does not fix the prices of air tickets.