The share of Value-Added Tax (VAT) levied on Aviation Turbine Fuel was reduced from 16 percent to 1 percent by the Tripura Cabinet. The decision was taken expecting better air traffic at Maharaja Bir Bikram Airport, Agartala after it gets international airport status.
Information and Cultural Affairs Minister, Sushanta Chowdhury said, "It is expected that the international airport status will be accorded to the airport as construction works are almost complete".
Addressing the media, he said, "with this deduction of the state's share of VAT on ATF, Tripura government will bear an annual loss of ₹1.67 crore".
The government's earnings from tax earlier stood at ₹ 1.78 crores per annum, he added.
He went on to compare neighbouring states West Bengal and Assam, saying, "Presently, West Bengal is charging 25 percent VAT, Assam is charging 23.65 percent".
"We are expecting the number of flights landing in MBB airport will increase after this step," he further said.
Adding that the in November 2018, the BJP government reduced the state's share of tax by 2 percent, fixing it at 16 percent, and now further reduction is being done in view of the situation, he said that the previous government used to charge 18 percent tax on ATF.