Kolkata/Bhubaneswar: The Odisha government is mulling to cut sales tax on aviation turbine fuel (ATF) to woo private carriers for start commercial flights operations from Bhubaneswar to various domestic and international destinations. The Biju Patnaik airport in the city is poised to have an international air terminal by August this year.
With sales tax on ATF in Odisha still high at 20 per cent, the state is keen to prune it to unlock the huge business potential which these carriers promise to offer. Realizing the growing importance of Bhubaneswar as a business destination, international airline operators like Fly Dubai and Air Asia had evinced interest in running their flights following commissioning of the international terminal facility.
More recently, Gurgaon-based low cost carrier Indigo has offered a bait to the state government- it is ready to take off international flights from the city if the state government slashes ATF substantially- on the lines of Andhra Pradesh government. In February 2008, the Andhra Pradesh government had drastically reduced sales tax on ATF from 33 per cent to four per cent.
21/06/12 Jayajit Dash/Business Standard
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