Tripura reduces VAT on jet fuel

Agartala: The Tripura government has decided to reduce the Value Added Tax (VAT) on aviation turbine fuel to attract airline operators to function from Maharaja Bir Bikram Kishore Manikya Airport, a minister said on Monday.
Law Minister Ratan Lal Nath told reporters that a decision had been taken to reduce VAT from 18 per cent to 16 per cent, as a result of which aviation fuel would cost significantly lesser in Tripura compared to Gopinath Bordoloi International Airport in neighbouring Guwahati or Netaji Subhash Chandra Bose International Airport in Kolkata.
Tripura’s state exchequer would take a hit of Rs 1.2 crore annually following the decision, Nath said.
This move is expected to incentivise airlines to buy fuel from Tripura which can ultimately benefit passengers in terms of ticket price. “With the aviation turbine fuel cost lowered, we hope that airline operators will be more interested to operate from Agartala,” Nath said. (PTI)