Mangaluru: Commerce & Kanci Industrial Room (KCCI) HERE has urged the Head of the Head of Karnataka to reduce taxes on airline turbine (ATF), as carried out by the Kerala Government, to make Mangaluru International Airport (MIA) appeal to new airlines to come and Start operating.
In the letter to CM Basilvaraj S.
Bommai, the President of the room Isaac Vas showed that the ATF was subsidized by 1% in a neighboring country while it was as high as 28% in Mangalore making it unique to new airlines to come and start operations.
He said the room had advocated to rationalize / reduced VAT on ATF in Karnataka for a long time.
In August last year, the Kerala government reduced the tax rate at ATF from 5% to 1% for all domestic flights in the state to drive domestic air travel.
Taxes reduced for domestic flights operating from Kochi International Airport and Cozhikode International Airport for a period of 10 years.
VAS caught attention to the last letter by the Union Minister for Civil Aviation urging Karnataka to rationalize / reducing VAT tax / sales tax on the ATF to bring it equivalent to neighboring countries.
Civil Aviation Union has emphasized the need to reduce VAT / Sales taxes in ATF to 1% -4% at all airports with direct effects.
Vas also urged CM to accelerate the acquisition of 36 hectares of land to develop the runway for MIA which was still delayed, placing obstacles in airport growth.