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WB govt waives sales tax on ATF in three state airports

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In an attempt to lure more airline companies to West Bengal and reduce the operating costs of airlines, the state chief minister, Mamata Banerjee announced waiver and reduction in sales tax on aviation turbine fuel (ATF) at some airports in the state. “To encourage more flights, enhance business opportunities and promote tourism, we will not levy sales tax on fuel sold from Durgapur, Cooch Behar and Bagdogra airports for the next three years,” she said in Kolkata recently.

Banerjee announced this soon after the signing of an agreement between state-owned Pawan Hans and private airport developer, Bengal Aerotropolis to start helicopter services between Durgapur and Kolkata.

She also announced airline companies tanking up in Kolkata, will get a 50 per cent discount on sales tax on ATF but only on the amount bought in excess of their total purchases in 2012-13. On purchases up to the same level as the previous financial year’s, tax will continue to be charged at 30 per cent. The changes will be come into effect immediately.

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