Vasco: The Airport Authority of India, Goa office has requested the state Government of Goa to reduce the Value Added Tax (VAT) on aviation fuel to 5%. The AAI Director B.C.H Negi was speaking after the Airport Advisory Committee Meeting. The meeting was attended by the South Goa Collector Tariq Thomas, Panchayat Minister Mauvin Godinho, South Goa MP Narendra Sawaikar, Travel and Tourism Association of Goa (TTAG), Tourism Department and others.
Speaking to media, AAI Director BCH Negi said “AAI has requested the state Govt to reduce the VAT on Aviation Turbine fuel to below 5 percent. This because it is a major component of Airline operation cost” he said. “Most of the states have reduced VAT on ATF to below 5 percent. Some states have even reduced VAT to zero as it is an effective method to attract more domestic airlines at a time when fuel cost has been rising day by day” he said. Director Negi also informed that 40 percent of airline cost makes up for fuels and if the if taxes are lowered passengers may get an attractively low travel price this tourist season” he told.
The meeting also discussed the major project of the the terminal building extension to increase the capacity of the International airport by another 2 million passengers per annum. Goa airport has been seeing atleast 30 percent growth in footfall and the present capacity of 7.65 million passengers per annum would soon fall short. The extension work will be completed by March 2021.
The increasing of parking bays will also be completed by December 2018. MP Narendra Sawaikar while speaking at the meeting told that parking facilities was one of the biggest issues here at the Goa International Airport and a decision on that is being taken soon.
