Wednesday, August 07, 2013

Mamata aims for the skies

Mamata Banerjee on Tuesday announced tax relief on fuel to lure airlines to Calcutta as she continued her business-friendly streak from last week’s Mumbai meeting but went no more than halfway.
Airlines will get a 50 per cent sales tax discount on aviation turbine fuel (ATF) but only on the amount bought in excess of their total purchases in 2012-13. On purchases up to the same level as the previous financial year’s, tax will continue to be charged at 30 per cent.
There will be a 100 per cent exemption on ATF sold from the smaller airports of Bagdogra and Cooch Behar for three years, a government release said. Mamata said at a news conference that Durgapur, where a new airport is being built, will also be eligible for the concession.
“More flights will come, the volume of investment will go up and business will increase because of the rebate in ATF sales tax for additional fuel consumption by airlines from Calcutta airport compared to 2012-13,” she said at Writers’ Buildings.
ATF is the single largest component — between 35 and 40 per cent — of the operational cost of an airline.
07/08/13 The Telegraph