PANAJI
In a major jolt to flight operators, the State government has hiked the Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 8 per cent to 15 per cent per kilo-litre. The hiked VAT will come into force from April 1.
The move is likely to further impact the operations of Dabolim International Airport, which is currently facing dearth of flights, with several operators like Qatar Airways, Oman Air shifting their base to Manohar International Airport, Mopa.
Under Secretary Finance Pranab Bhat has issued a notification in this regard. According to the government, despite the hike, the VAT on ATF in Goa is the lowest across India.
Last year, ahead of the commencement of Mopa airport, the government had slashed VAT on ATF from 18 per cent to 8 per cent per kilo-litre.
According to information, while few flights opt to refuel at the Dabolim international airport, the majority prefer Mopa.
The impact of the latest decision taken by the government is to be seen. It will be also interesting to see whether the air carriers will pass on the burden to their passengers.
