Saturday, December 08, 2018

Andaman to reimburse the VAT component on ATF to Airlines Companies

Port Blair: In an another initiative to increase frequency of flights and have more competitive and lower air-fare on the Island-Mainland Sector, the A&N Administration has decided to reimburse the VAT component on Aviation Turbine Fuel (ATF) paid on those incremental flights (over and above existing number of flights), which are introduced on Port Blair Sector during the period upto March 31, 2019.
“This will be applicable from prospective effect. The reimbursement of VAT component on the incremental flights will encourage the Airlines to introduce additional flights on the Island-Mainland Sector which will facilitate more competitive and low air-fare on the sector,” an official release of Andaman and Nicobar Administration said here today.
A suitable mechanism for reimbursement of the VAT component to the airline operator is being devised by the Commissioner, VAT, A&N Administration. High airfare is always considered as a major hindrance in the growth of tourism industry in Andaman and Nicobar Islands and this step will certainly help in lowering airfare upto a certain extent.
07/12/18 UNI