The move is expected to increase air traffic at the Tripura Airport.
Agartala: The Tripura Cabinet has decided to reduce the share of Value-Added Tax (VAT) levied on Aviation Turbine Fuel from 16 per cent to 1 per cent, on Tuesday. With this move, they are expecting better air traffic at Maharaja Bir Bikram Airport in Agartala, soon after it gets the International Airport status, said the Information and Cultural Affairs Minister.
“It is expected that the international airport status will be accorded to the airport as construction works are almost complete,” Sushanta Chowdhury said while addressing a press conference.
“With this deduction of the state’s share of VAT on ATF, Tripura government will bear an annual loss of ₹ 1.67 crores,” he mentioned.
Earlier, the government’s earnings from the tax stood at ₹ 1.78 crores per annum, he added.
Presenting a detailed comparison with neighbouring states he said, “presently, West Bengal is charging 25 per cent VAT, Assam is charging 23.65 per cent.”
“We are expecting the number of flights landing in MBB airport will increase after this step,” he said. The previous government used to charge an 18 per cent tax on the ATF.
In November 2018, the Bharatiya Janata Party (BJP)-led government reduced the state’s share of tax by 2 per cent and fixed it at 16 per cent. Now, according to Chowdhury, further reduction has been done in view of the present situation.
SOURCE: ANI, Written by: Rohini Roy