Tripura Cabinet has decided to reduce the share of Value-Added Tax (VAT) levied on Aviation Turbine Fuel from 16 per cent to 1 per cent expecting better air traffic at Maharaja Bir Bikram Airport Agartala soon after it gets the international airport status.
"It is expected that the international airport status will be accorded to the airport as construction works are almost complete," information and cultural affairs minister Sushanta Chowdhury told reporters on Tuesday.
Addressing a press conference, the minister said, "with this deduction of the state's share of VAT on ATF, Tripura government will bear an annual loss of Rs 1.67 crore."
Earlier, the government's earnings from the tax stood at Rs 1.78 crore per annum, he added.
Presenting a detailed comparison with neighbouring states he said, "presently, West Bengal is charging 25 per cent VAT, Assam is charging 23.65 per cent."
"We are expecting the number of flights landing in MBB airport will increase after this step," he said. The previous government used to charge an 18 per cent tax on the ATF. In November 2018, the Bharatiya Janata Party (BJP)-led government reduced the state's share of tax by 2 per cent and fixed it at 16 per cent. Now, further reduction is done in view of the present situation, he added.
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