Thursday, September 12, 2013

No VAT relief yet, fliers worried

Bhubaneswar: With the state government still dilly-dallying on value-added tax (VAT) reduction in aviation turbine fuel (ATF), domestic fliers are a bit jittery about flight operations from the state capital.
Two weeks ago Air India decided to stop its Bhubaneswar-Bangalore flight from early winter citing loss. Similarly, the Vijayawada-based regional airliner Air Costa, which had evinced interest to operate from here, is in two minds. It is yet to apply to the director-general of civil aviation (DGCA) to start the operation, sources said.
Chief minister Naveen Patnaik in March, during the inauguration of new domestic terminal, promised to reduce VAT on ATF from 20% to 4%, purportedly for attracting international fliers.
12/09/13 Riyan Ramanath V/Times of India
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