Air turbine fuel VAT slashed to 4% in Amritsar

Amritsar BJP MP Navjot Singh Sidhu on Friday hailed state government’s decision to slash VAT on Aviation Turbine Fuel (ATF) from 22 per cent to 4 per cent. He termed it as a step in the right direction to save the Sri Guru Ram Das International (SGRI) Airport.
He said slashing of the taxes will directly benefit airlines, which would get cheaper fuel and may show more interest in operating from here.
Sidhu, who had taken up the matter with Chief Minister Parkash Singh Badal said that various airlines had stopped operating from the local airport in the recent past.
“The act (of reduction of VAT) would be an incentive to airlines and their interest will be regenerated,” he said, adding that the Chief Minister’s decision was a much desired gift to the “holy city”.
“The ATF constitutes one of the major portions of operating costs of any airline. The ATF is cheaper in Chandigarh and many airlines were diverting their operations (flights) to the union territory. Now they will prefer to start operating from here again and this will benefit the non-resident Indians (NRIs) and pilgrims, visiting the city of Golden Temple’’, he said.
02/07/11 ExpressIndia

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Categories: Indian Aviation- In General Jul 2011