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PANJIM: Planning to promote Goa as a ‘high value shopping destination’, the cabinet on Friday cleared a proposal to create a scheme for refunding VAT on purchases made in the state, initially for foreign and ultimately for Indian tourists too, Chief Minister Manohar Parrikar told media.
The proposal will also include aviation fuel, in a bid to increase the number of seats. Foreigner’s refund would begin by October and would be initially handled at the airport.
“The question is whether we can make Goa a high value shopping destination. It is a trial,” Parrikar said, expressing confidence that he can make it happen. “Right now this amendment says that we have acquired power to create the scheme. The same is with aviation fuel…,” Parrrikar said, adding that in the first year, he will only give it to foreign tourists.
Parrikar also spoke about an Aviation Turbine Fuel (ATF) scheme which would also attract more tourists. Here, VAT charged for ATF would also be refunded and only 5 percent VAT will remain with the state.
Friday’s cabinet decision gave the authority to the Commissioner of Commercial Taxes to formulate the scheme.
“Let me try it first with foreign tourists. Let me get some experience; then we can implement it for Indians,” he said. “The idea is that we can make Goa a high-value shopping destination. We are implementing it on trial basis… I think I can make it. In the same way the aviation fuel is a way to increase the number of seats,” he said.
He said that this refund will only be given on purchases that are of high value, which would be given discounts.
The chief minister included this as part of his budget proposals and that a refund of VAT would be given at the time of departure from the airport against valid tax invoices.
The government has already reduced the VAT on ATF from 22 percent to 12.5 percent and airline carriers would get a refund of 7.5 percent when they refuel in Goa.
The question is whether we can make Goa a high value shopping destination. It is a trial, said Parrikar, expressing confidence that he can make it happen.
