Tax relief on aviation turbine fuel once mining starts: Goa Chief Minister

Goa government has said that the proposed tax relief on aviation turbine fuel for the airline companies can be given only after mining resumes in the state.

"The VAT on aviation turbine fuel can be reduced from existing 12 per cent to 5 per cent, if mining resumes in the state," Chief Minister Manohar Parrikar told PTI.

The state has been losing major revenue source due to closure of mining industry since the last one year, he said. There has been a 25 per cent revenue dip due to mining halt which the state has managed to recoup through various measures, he said.

If mining starts, the value added tax (VAT) on aviation turbine fuel can be reduced to 5 per cent, promoting the airlines industry in the state.

The Parrikar-led government had in the budget assured to bring down VAT on aviation turbine fuel which would encourage airlines to frequently fly to Goa for refuelling, increasing the air connectivity of the beach state.

The mining industry in the state has been facing temporary closure as the Supreme Court is hearing a petition against illegal ore extraction activity in the state.

Meanwhile, Mr Parrikar also said the current Dabolim airport has been able to handle only about four million passengers annually even with the additional integrated building, which would be inaugurated on December 3.