Bhopal: The state government is willing to reduce VAT on aviation turbine fuel (ATF) provided airlines come with a concrete proposal to connect new cities from Raja Bhoj Airport. Airlines have been demanding reduction in VAT on ATF from the existing 25%.
The issue was discussed at a meeting of senior officials chaired by chief secretary SR Mohanty. The chief secretary assured that the tax reduction could be considered only if airlines also reciprocate by starting more operations from Bhopal. Presently, Air India, SpiceJet and IndiGo are operating from Bhopal.
In the meeting is was decided to start cargo operations from state capital. Mohanty is learnt to have asked Bhopal collector Tarun Kumar Pithode to identify about 50-acre land near the airport for operationg cargo services.
Commissioner, Bhopal division Kalpana Shrivastava said the chief secretary cargo services will start in next two months from Bhopal.
High VAT on ATF at Bhopal has been an irritant for airlines operating from the city. ATF constitutes around 40% of overall cost of a flight and airlines have been requesting the state government to reduce VAT on an immediate basis.
18/06/19 Ramendra Singh/Times of India
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The issue was discussed at a meeting of senior officials chaired by chief secretary SR Mohanty. The chief secretary assured that the tax reduction could be considered only if airlines also reciprocate by starting more operations from Bhopal. Presently, Air India, SpiceJet and IndiGo are operating from Bhopal.
In the meeting is was decided to start cargo operations from state capital. Mohanty is learnt to have asked Bhopal collector Tarun Kumar Pithode to identify about 50-acre land near the airport for operationg cargo services.
Commissioner, Bhopal division Kalpana Shrivastava said the chief secretary cargo services will start in next two months from Bhopal.
High VAT on ATF at Bhopal has been an irritant for airlines operating from the city. ATF constitutes around 40% of overall cost of a flight and airlines have been requesting the state government to reduce VAT on an immediate basis.
18/06/19 Ramendra Singh/Times of India
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