Tripura govt not to reduce tax on aviation fuel

Agartala: Tripura Chief Minister Manik Sarkar today made it clear in the assembly that unless the private airlines make commitment to reduce the passenger fare, the state government will not think of reduce tax on aviation fuel (AF).
Reacting to a media report regarding allegation of some private airlines that they are winding up the fleet from Tripura because of highest amount of sales tax collected by the state on AF, Mr Sarkar terms, it as “business tactics to justify the exorbitant fare.”
He admitted that Tripura is collecting 22.90 percent sale tax on AF, highest in the country but the airlines were also selling tickets at high price in the sector and offering less facility to the passengers.
The opposition legislator Gopal Chandra Roy further alleged in the house of that the private airlines in the state have justified their move to withdraw from Tripura as well as reduce the aviation fleets from Tripura for highest amount of sale tax on AF.
Citing examples of Mizoram, Andaman and J and K who have waved sale tax on AF and other states of the country charging maximum at 20 percent, Roy asked the government to  allow for the reduction of the tax at least to allow for the continuation of the flight service in and aroundthe state. (UNI)