Thursday, July 10, 2014

GMR seeks reduction of VAT on jet fuel

Hyderabad: In order to boost the aviation and aerospace industry in the State, the GMR group which operates and runs the international airport at Shamshabad here, has requested Chief Minister K. Chandrasekhar Rao to reduce the Value Added Tax (VAT) to four per cent on Aviation Turbine Fuel (ATF) and take some other measures too.

Mr. Rao has in turn agreed to consider the proposal, according to CMO sources. Making a power point presentation, the GMR group representatives explained that addressing the VAT issue would bring in more airlines to Hyderabad. They pointed out that airlines in the city have withdrawn/reduced frequency by 13 per cent in the financial year 2013, and thus far, this year there has been a four per cent reduction.

“Airlines prefer other States for fuelling and new airlines are setting up a base in other States, resulting in loss of opportunity,” they informed in the presentation.
10/07/14 The Hindu
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