Govt. urged to reduce VAT on aviation turbine fuel

The Kanara Chamber of Commerce and Industry (KCCI) on Tuesday urged the State government to reduce value added tax (VAT) on aviation turbine fuel (ATF) to 1% from 28%.In a letter to Chief Minister Bas

The Kanara Chamber of Commerce and Industry (KCCI) on Tuesday urged the State government to reduce value added tax (VAT) on aviation turbine fuel (ATF) to 1% from 28%. In a letter to Chief Minister Basavaraj Bommai, KCCI president Isaac Vas said that with the opening of new airports around Mangaluru International Airport, several concessions were given to different airlines in their respective States thereby ensuring more airline operations and maximum passenger traffic. After relaxation of COVID-19 restrictions, air traffic is poised to increase in the coming days and Mangaluru International Airport should not be left behind in such a situation. While ATF is subsidised to 1% VAT in neighbouring Kerala, it is as high as 28% in Mangaluru making it unattractive for new airlines to commence operations. The chamber has been advocating for rationalisation or reduction of VAT on ATF in the State for a long time.