AVM demands reduction of VAT on air turbine fuel

AMRITSAR: Amritsar Vikas Manch (AVM) on Monday demanded VAT reduction on air turbine fuel (ATF) from 22% to 4%.
AVM patron Charanjit Singh Gumtala said government should also release Dr Manohar Singh Gill committee report prepared in 2009 to find ways and means to attract new airlines and to start more flights from Amritsar.
He said there was 22% VAT on ATF in Amritsar, while it was only 4% in Chandigarh.“Airlines have to shell out Rs 6,000 more on per kilolitre of ATF in Amritsar as compared to Chandigarh. And in terms of one flight, it translates into a loss of Rs 3 lakh which is a major disincentive for the airlines,” said Singh.
In 2008 Jet Airways withdrew its Amritsar-London international flight. Singapore Airlines also wound up its operations from February 2009 due to costly fuel and high landing charges in Amritsar as compared to Delhi.
For landing at Rajasansi airport, the civil aviation ministry was charging Rs 1,54,000 per flight in Amritsar from Singapore Airlines as compared to Rs 75,000 charged by the Delhi airport.
Similarly, Jet Airways was shelling out Rs 94,000 as landing fee for domestic flights compared to Rs.69,000 paid in Delhi in 2008. BJP MP from Amritsar Navjot Singh Sidhu had launched agitation to restore these flights following which a parliamentary panel headed by the then sports minister Manohar Singh Gill was formed.
There was 22% VAT on ATF in Amritsar, while it was only 4% in Chandigarh.