Panaji: In a bid to arrest slump in arrivals and insulate itself from rising airfares during the upcoming tourist season, the Goa government has decided to offer incentives to all airlines refuelling themselves in the beach destination.
Chief Minister Manohar Parrikar yesterday said the state has already slashed Value Added Tax (VAT) on Air Turbine Fuel (ATF) refuelled in the state from 22 percent to mere 12.5 per cent.
"Further we are in the process of drafting a scheme wherein the frequently flying airlines will get refund up to five percent of VAT on ATF from the 12.5 per cent. So it would be economical for airlines to refuel the aircraft in Goa," he said.
The rising airfare has become a major concern for the tourism industry which fears that it may contribute to the slump in arrivals.
Media reports indicated that some of the domestic flights will hike their tickets by 25-30 per cent due to rise in ATF pricings. But the state government has said that the rise has been pre-empted due to incentives offered for the airline companies.
05/09/13 PTI/Business Standard
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Chief Minister Manohar Parrikar yesterday said the state has already slashed Value Added Tax (VAT) on Air Turbine Fuel (ATF) refuelled in the state from 22 percent to mere 12.5 per cent.
"Further we are in the process of drafting a scheme wherein the frequently flying airlines will get refund up to five percent of VAT on ATF from the 12.5 per cent. So it would be economical for airlines to refuel the aircraft in Goa," he said.
The rising airfare has become a major concern for the tourism industry which fears that it may contribute to the slump in arrivals.
Media reports indicated that some of the domestic flights will hike their tickets by 25-30 per cent due to rise in ATF pricings. But the state government has said that the rise has been pre-empted due to incentives offered for the airline companies.
05/09/13 PTI/Business Standard
