Agartala Airport Gets International Status, Reduces VAT From 16% To 1%

Agartala, Nov 17: After Maharaja Bir Bikram Airport Agartala gets its international airport status, the Tripura Cabinet has decided to lower the VAT on aviation turbine fuel from 16 per cent to 1 per cent.

According to information and cultural affairs minister Sushanta Chowdhury, the airport will receive international airport status as construction work is almost complete.

The minister told a press conference that Tripura will suffer a loss of Rs 1.67 crore annually by deducting the state’s share of VAT from ATF.

According to him, earlier the government earned Rs 1.78 crore from the tax. He further presented a comparison of the VAT rates of neighbouring states, saying that currently, West Bengal charges 25% VAT while Assam charges 23.65%.

It is anticipated that the number of flights landing at MBB airport will increase once this step is taken. ATF used to be subject to an 18% tax under the previous government while the BJP-led government decreased the state’s share of tax by 2 percentage points and fixed it at 16 per cent in November 2018. Therefore, as a result of the current situation, further reduction is being made.