Odisha waives off VAT on ATF to attract international airlines

Bhubabneswar: In a bid to attract Airlines to start international operations from the Biju Patnaik International Airport, the State government is leaving no stones unturned. In a recent move, the government has decided to totally waive off Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) for airlines who seek to operate international flights from the airport.

The State government had earlier reduced the amount of VAT collected on ATF from 20% collected countrywide to 5%. The airport continues to see growth and the number of passengers handled has crossed the 15 lakh mark. However, even 18 months after getting the tag of an international airport, commercial operations are yet to begin at the Biju Patnaik International Airport.

According to sources, in the preliminary stage discussions are on to extend the services of Bhubaneswar-Mumbai Air India flight to Dubai. Similarly, talks are on for extension of services of Bhubaneswar-Kolkata Indigo flight to Bangkok. Moreover, authorities are in discussions with Jet Airways to launch international operations from the Biju Patnaik International Airport.

On the other hand, ABC Airways has agreed to commence operations of its Fly Easy flights connecting Bhubaneswar and Bengaluru from the month of June.