Friday, April 06, 2018

West Bengal extends exemption on air fuel tax at Bagdogra

Kolkata:  The state government has extended the exemption of surcharge (previously Sales Tax) on aviation turbine fuel (ATF) sold at Bagdogra airport after the phenomenal rise in traffic since the incentive was introduced in August 2013. With fuel comprising nearly 40% of an airline’s operational cost, tax saving on fuel is a big incentive for any airline to fly into Bagdogra simply to load enough fuel to do another sector.
That the state government policy has been instrumental in driving the growth is evident from statistics. While flyer count between 2014-15 and 2017-18 has doubled as have the number of flights, fuel off take by airlines had gone up nearly four times.
“No surcharge will be levied on ATF sold at Bagdogra airport till further notice. The decision taken by the government five years ago has reaped rich dividends with traffic growing at 40%. We wish to sustain the growth by extending the incentive,” a state transport department official said.
06/04/18 Subhro Niyogi/Times of India