New policy to refund VAT on aviation fuel

PANJIM: Setting aside all speculations about closure of Dabolim airport, Goa government, while announcing its move to make Dabolim a 'airline hub', has disclosed its intentions to have civil aviation

TEAM HERALD
PANJIM: Setting aside all speculations about closure of Dabolim airport, Goa government, while announcing its move to make Dabolim a ‘airline hub’, has disclosed its intentions to have civil aviation policy which will refund Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) for airlines frequenting Goa’s only airport.
Chief Minister Manohar Parrikar in his Budget speech on Tuesday said that the government intends to have a civil aviation policy to encourage more flights to come to Goa and to make the airport an airlines hub. “Dabolim airport has already been upgraded to handle 4 million passengers. In order to encourage more flights to Goa and to make the airport as an airline hub, government intends to have a civil aviation policy,” he said. 
Government announced that it is ready to refund the Value Added Tax of 12 per cent collected on the Aviation Turbine Fuel for all the airlines who have at least four aircrafts parked overnight at Dabolim and taking of early morning from there.
This initiative, Parrikar said, I am sure, will boost the tourist flow to the state and help achieve the six million tourist target set for 2017. He said that the policy will help Goa increase its connectivity with the tier II and tier III cities, as the memorandum of understanding would be signed with the airlines extending over three years.
The state government will form empowered committee headed by chief minister to negotiate with the potential companies.

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