Goa offers 5% refund to airlines on refuelling
PTI, PANAJI | 05 September 2013 14:17 IST

In a bid to arrest slump in arrivals and insulate itself from rising airfares during the upcoming tourist season, the Goa government has decided to offer incentives to all airlines refuelling themselves in the beach destination.
Chief Minister Manohar Parrikar yesterday said the state has already slashed Value Added Tax (VAT) on Air Turbine Fuel (ATF) refuelled in the state from 22 per cent to mere 12.5 per cent.
"Further we are in the process of drafting a scheme wherein the frequently flying airlines will get refund up to five per cent of VAT on ATF from the 12.5 per cent. So it would be economical for airlines to refuel the aircraft in Goa," he said.
The rising airfare has become a major concern for the tourism industry which fears that it may contribute to the slump in arrivals.
Media reports indicated that some of the domestic flights will hike their tickets by 25-30 per cent due to rise in ATF pricings.
But the state government has said that the rise has been pre-empted due to incentives offered for the airline companies.
"The airline companies which fly more frequently will get refund of VAT on ATF. The more the flights the more would be the benefit. This means they will get more passengers in the state," Parrikar reasoned.
The scheme for the same is being drafted and it will be notified by October-November this year when tourist season starts, he said.
The state government has also announced a scheme of refunding VAT on goods purchased.
Government sources said that both the schemes would be notified in the last quarter of the current calendar year.
Drop a comment
Latest News
- Half of the Covid deaths in Sept, Max in Salcete, spreading in the hinterland
- Goa’s Covid +ves are more than the national average; is home isolation a trend?
- 50% of Zuarinagar Covid positives are Zuari workers; should the factory be shut down?
- CHOLLAM, CHOLLAM KITEM? ZAI KITEM?
- Dr Suresh Amonkar loses Covid battle, 8th death in Goa
- Goa getting into community transmission! Locals found Covid Positive!!
- First casualty of Covid19 in Goa: The Media
- Deshprabhu required intubation to stabilise oxygen level, not a CT Scan: GARD releases Fact Sheet
- Vishwajit sets up new high level Com to probe Deshprabhu’s death, GMC Com dropped: goanews.com Expose Impact
- Did Nehru really delay Liberation of Goa?
Tourism
- Shifting all casinos on-shore in 3 years; Goans to be debarred: Parrikar
- Throw out Lamanis to protect Goenkarponn: Babu
- Shack owners threaten to show black flags to PM
- Cabral shifts hot air baloon to his constituency in South Goa
- Russians voted from Goa for Parliamentary poll
- Sunburn to shift from Goa to Mumbai or Delhi?
- Goa to find legal course to debar foreigners from running business
- Not Goa, TN is favourite destination of foreigners
- Ravi seeks ban on Nigerians, calls them Negroes
- Kejri makes BJP leaders fight over drug trade of Goa