Panaji: Although the Union of the Civil Aviation Ministry of Civil Service Presses for Deduction of Value Added Tax (PPN) on Flight Turbine (ATF), Goa is unlikely to provide a relief airline and can hold on to the current tax structure.
In addition to the reluctance to surrender on rare income, sources also say the reduction of VAT on flight fuel will have limited benefits for domestic personal airlines operating from Goa.
Currently VAT on ATF is 18% per kilo-liter.
‘Very few airlines filling fuel in Dabolim’ on Wednesday the civilian minister Jyotiraditya Scindia urged 22 states and the Union (UTS) region including cave to bring VAT to ATF in the range of 1% to 4% to provide a drive trip to the air.
A similar appeal was carried out earlier at that time the civilian minister of Hardeep Singh Puri.
“One and a half years earlier, a similar department order was made and rejected.
Similar processes likely to be followed,” said an official.
One of the main reasons quoted by the state government is that very few airlines fill fuel in ATF in Dabolim.
In October 2019 the Ministry of Civil Aviation has urged Goa to reduce VAT on ATF to 1% for commercial operations because the level of 18% is very high.
The ministry has said to reduce it under 4% so that “sustainable airline financial health” and also encourage more flights.
The state government decided to keep the tariff unchanged and said that once the new airport in Mapa was built, the VAT on ATF could be reduced to provide an incentive airline to operate additional flights.