PHD Chamber - GMR Aviation Summit 2015 recommended drastic VAT cuts on ATF from average rate of 22% to less than 5%, arguing that states that have so done, seen immediate connectivity and traffic impact of this incentive.
The white paper released on 'Developing Regional & Remote Connectivity' by senior government functionaries and industry representatives under aegis of PHD Chamber of Commerce and Industry, demanded that lowering ATF taxes would fuel connectivity to regional air and cargo hubs and increase their traffic drastically.
The white paper, however, adds that with a reduction of VAT on ATF from 20% to 4%, Chhattisgarh has seen almost 100% increased in air connectivity.
West Bengal's incentive has led to Spice Jet starting an international connection from Bagdogra to Kathmandu; this airport has clocked a 64% y-o-y rise in passenger traffic in April-May FY15 as the number of flights has grown by 37% compared to previous year.
Likewise, the connectivity and the air traffic was also increased substantially in states such as Goa, MP and Jharkhand as these respectively curtailed VAT on ATF from 22%, 23%, and 20% to 12.5%, 5% and 4%.
03/02/15 Business Standard
The white paper released on 'Developing Regional & Remote Connectivity' by senior government functionaries and industry representatives under aegis of PHD Chamber of Commerce and Industry, demanded that lowering ATF taxes would fuel connectivity to regional air and cargo hubs and increase their traffic drastically.
The white paper, however, adds that with a reduction of VAT on ATF from 20% to 4%, Chhattisgarh has seen almost 100% increased in air connectivity.
West Bengal's incentive has led to Spice Jet starting an international connection from Bagdogra to Kathmandu; this airport has clocked a 64% y-o-y rise in passenger traffic in April-May FY15 as the number of flights has grown by 37% compared to previous year.
Likewise, the connectivity and the air traffic was also increased substantially in states such as Goa, MP and Jharkhand as these respectively curtailed VAT on ATF from 22%, 23%, and 20% to 12.5%, 5% and 4%.
03/02/15 Business Standard
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