the goan I network
VASCO
The Airports Authority of India (AAI) has requested the State government to reduce VAT on Aviation Turbine Fuel (ATF) to below 5 per cent, as it was a major component of operational costs for aviation.
This was discussed at the Airport Advisory Committee meeting on Tuesday, which was attended by Panchayats Minister Mauvin Godinho, South Goa MP Narendra Savaikar, South Goa Collector Dr Tariq Thomas, Airport Director BCH Negi, representatives of Travel and Tourism Association of Goa (TTAG), tourism department, Central Industrial Security Forces (CISF), Goa Police, Indian Navy and others departments.
Later speaking to media persons, AAI Director BCH Negi said the AAI had requested the State government to reduce VAT on ATF to below 5 per cent as it was a major cost component for operations of airlines.
“Most states have brought down VAT on ATF to below 5 per cent and in some cases, State governments had reduced the VAT to almost zero percent. This is to attract more domestic airlines at a time when fuel costs are rising day by day,” said Negi.
“Almost 40 percent of airline cost is for ATF and so, if taxes are brought down, passengers can get lower fares due to reduced flight operating costs,” Negi added.
South Goa MP Narendra Savaikar said the main issue of parking facilities was being sorted out in coordination with various agencies.
The meeting was preceded by a “Swachhata” event on the first floor of the New Terminal Building, where all cleaning staff working at the Airport were distributed hygiene kits and best performers were rewarded by AAC Chairman and members.
