The Odisha government is readying its plan to cut sales tax on aviation turbine fuel (ATF) to five per cent from 20 per cent with an aim to woo global and domestic carriers to run flights to and from Bhubaneswar.
This follows the Union Cabinet’s nod on October 30 to accord international tag to Biju Patnaik airport in the city.
“We have no objections to curtailing ATF sales tax to five per cent even if it means a loss of nearly Rs 20 crore annually to the state exchequer. Pruning sales tax will help attract many airline carriers to the state. The government is expediting the process to cut tax on ATF and the file will soon be sent to the chief minister’s office for approval,” said an official.
The international tag for the city airport is expected to offer improved connectivity, wider choice of services at competitive cost to the air travellers, boost international tourism and economic development.
Realising 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.
04/11/13 Bhubaneswar/Business Standard
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This follows the Union Cabinet’s nod on October 30 to accord international tag to Biju Patnaik airport in the city.
“We have no objections to curtailing ATF sales tax to five per cent even if it means a loss of nearly Rs 20 crore annually to the state exchequer. Pruning sales tax will help attract many airline carriers to the state. The government is expediting the process to cut tax on ATF and the file will soon be sent to the chief minister’s office for approval,” said an official.
The international tag for the city airport is expected to offer improved connectivity, wider choice of services at competitive cost to the air travellers, boost international tourism and economic development.
Realising 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.
04/11/13 Bhubaneswar/Business Standard
