Lucknow: The UP government is likely to decline the request of Union Minister for Civil Aviation Ajit Singh seeking exemption of airports in the state from property tax.
Urban Development Department principal secretary C B Paliwal, in a meeting to discuss property tax exemption on all existing and upcoming airports and reduction in VAT on air turbine fuel (ATF) in the state, told Secretary of Civil Aviation Anita Singh that airports cannot be exempted as it is a commercial activity.
Officials of Commercial Tax Department in the meeting informed the state gets a revenue of Rs 135 core annually by charging 21 per cent VAT on ATF.
Sources said the department officials also had some reservations on reducing VAT as that will cause a loss to the state exchequer.
The meeting was in preparations to a meeting called by the Union Minister for Civil Aviation in Delhi on September 10 with the officials of different states on the same issue.
Read News In Full 07/09/13 Lalmani Verma/Indian Express
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