Bangalore: Bangalore International Airport Limited (BIAL) is in talks with the government of Karnataka to bring down sales tax on Aviation Turbine Fuel (ATF) to encourage more airlines to set up base in Bangalore and promote tourism in the state.
This is part of BIAL’s home carrier advantage plan wherein airlines stand to benefit with concessions from the airport operators provided the airline can achieve a throughput of at least 1 million additional and have the highest number of night parked aircraft in KIAL among other conditions. But high sales taxes in Karnataka has been the deterrent for many carriers so far. At present, sales taxes in Karnataka is amongst the highest in the country at 28%.
Private carriers are also weary to set up base in Bangalore due to the high User Development Fee (UDF) of BIAL. Incidentally UDF was increased at the airport last week from Rs 301.40 (domestic) and Rs 1022.30 (international) to Rs 342 (Domestic) and Rs 1368 (international), representing an increase of 13.37% and 33.82% respectively.
09/07/14 New Indian Express
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This is part of BIAL’s home carrier advantage plan wherein airlines stand to benefit with concessions from the airport operators provided the airline can achieve a throughput of at least 1 million additional and have the highest number of night parked aircraft in KIAL among other conditions. But high sales taxes in Karnataka has been the deterrent for many carriers so far. At present, sales taxes in Karnataka is amongst the highest in the country at 28%.
Private carriers are also weary to set up base in Bangalore due to the high User Development Fee (UDF) of BIAL. Incidentally UDF was increased at the airport last week from Rs 301.40 (domestic) and Rs 1022.30 (international) to Rs 342 (Domestic) and Rs 1368 (international), representing an increase of 13.37% and 33.82% respectively.
09/07/14 New Indian Express
