The Coucil of Ministers has decidced to reduce 2 percent VAT on Aviation Turbine Fuel (ATF) to attract private airline companies to operate their flights to the state.
The state cabinet in its meeting approved the proposal to slash down 2 percent VAT on the ATF in view of the people’s inconvenience due to shortage of flights, said Education Minister Ratan Lal Nath.
“Due to the decision, the state government will have to incure a revenue loss of Rs. 1.20 crore in a year. This has been done for the public interest”, he said while talking to the media in the civil secretariat on Sunday.
Private airline companies have been insisting for reduction in ATF as it appears a major bottleneck to keep air ticket at reasonable price. However, the decision came after the reduction in flight number to the state.
Meanwhile, air fares continue to going up due to shortage of flights. The number of flights operating on the Kolkata-Agartala and Agartala-Guawhati has been reduced to twenty triggering shortage of air tickets.