Sales tax cut on aviation fuel only in Kannur airport: CM

Through move, govt. hopes to attract more airline companies to Kannur

The sales tax on ATF at Kannur airport was reduced to 1% for 10 years.

Chief Minister Pinarayi Vijayan has said that the government has reduced the sales tax on Aviation Turbine Fuel (ATF) for flights from the Kannur international airport as part of the regional connectivity scheme under the Union government’s Ude Desh ka Aam Naagrik (UDAN).

He was replying to a submission by A.P. Anil Kumar in the Assembly on Monday, on providing sales tax concessions on ATF for Kannur airport and concerns over whether it would affect Karipur airport.

Other three ineligible

The Chief Minister said that the airports at Thirvananthapuram, Kochi, and Kozhikode were not eligible for similar concessions. The Kannur airport, being a greenfield one, had to incur heavy expense for its day-to-day functioning. The sales tax on ATF was reduced to 1% for 10 years as part of Kannur joining UDAN and also because it was a new airport. By offering concessions, the government hoped to attract more airline companies to Kannur and to reduce the airfare, he said. He said the UDAN scheme in Kannur airport would benefit the domestic passengers.