agencies/pnn, Bhubaneswar, june 11: In a bid to attract international flight operators in Orissa, the state cabinet Thursday approved a proposal to exempt international air carriers from paying value added tax (VAT) on aviation turbine fuel (ATF).
“This incentive by the state government is a bid to strengthen the aviation network in the state and to attract international as well as domestic airline operators to Biju Patnaik Airport in Orissa,” chief secretary G.C. Pati told reporters here.
The cabinet meeting was chaired by Orissa CM Naveen Patnaik.
He said while the government had reduced the rate of VAT on ATF from 20 per cent to 5 per cent with effect from December 1, 2013, now the government has completely exempted ATF from VAT.
The government claimed that there would be no financial loss for the state following the VAT exemption as there is a possibility of an increase in certain economic activities which may widen the tax base in the state.
Many global carriers are keen to run their flights to and from Bhubaneswar airport.
