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Goa offers to refund jet fuel VAT to attract more air traffic
March, 06th 2014

The Goa government today proposed to refund Value-Added Tax (VAT) levied on aviation turbine fuel (ATF) for airlines which operate frequent flights to the tourist state.

The proposal is part of the Budget presented in the Assembly by Chief Minister Manohar Parrikar, who also holds the finance portfolio.

The refund offer is part of the civil aviation policy, which seeks to make Goa an aviation hub and encourage more flights so as to boost tourist arrivals, he said.

The government is ready to refund the 12 per cent VAT levied on ATF for airlines who have at least four aircraft parked overnight at Dabolim (Goa airport) and operate early morning flights from there, Parrikar said.

"This initiative, I am sure, will boost the tourist inflows to the state and help achieve the six million tourist target set for the year 2017."

Goa currently gets over one million holiday-makers every year.

The policy will help Goa increase its connectivity with Tier II and Tier III cities, the Chief Minister said.

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