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regular-article-logo Tuesday, 05 November 2024

State’s decision to withdraw complete waiver of VAT on ATF at Bagdogra to hit tourism: Raju Bista

BJP MP of Darjeeling has termed it as a fresh poser for the tourism industry of north Bengal, a sector that had severely suffered during the Covid-19 pandemic

Avijit Sinha Siliguri Published 04.08.24, 09:59 AM
Raju Bista

Raju Bista File picture

The state’s decision to withdraw the complete waiver of VAT (value-added tax) from the Air Turbine Fuel (ATF) at Bagdogra airport and impose a VAT of 12.5 percent has drawn criticism from the saffron camp.

Raju Bista, the BJP MP of Darjeeling, has termed it as a fresh poser for the tourism industry of north Bengal, a sector that had severely suffered during the Covid-19 pandemic.

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“The West Bengal government’s decision to impose VAT on ATF at Bagdogra airport poses a significant threat to the (tourism) industry’s rebound. Instead of bolstering the tourism sector with performance-linked incentives and additional subsidies, the Bengal government has chosen to impose the VAT on air fuel. This decision will inevitably increase flight costs from Bagdogra, which could deter people and tourists from visiting the region. This will affect the ongoing recovery efforts in the tourism industry that had suffered during the past few years,” said Bista.

He mentioned that in north Bengal, Bagdogra is the sole operational civilian airport and serves over 8,000 passengers every day.

“The expansion work of the airport is in progress and we expect the number of flights will go up in due course. The growth This growth in passenger traffic every year represents the potential of this region to attract high-value tourists,” Bista, who also heads the advisory committee of the airport, said.

It may be mentioned that in August 2013, chief minister Mamata Banerjee announced a complete waiver of VAT on ATF in Bagdogra. This attracted the airline companies to introduce flights to Bagdogra so that they could buy fuel at a cheaper rate.

However, the state has recently reduced the VAT from 25 percent to 20 percent in Calcutta while introducing it at a 12 percent rate in Bagdogra.

“The tourism industry is an important sector that generates employment in north Bengal. Due to the rise in flight fares, if the industry suffers, it will impact lakhs of people. I feel the state should reconsider the decision,” the MP added.

The Trinamool leadership of Darjeeling district, however, feels the apprehension holds no ground while pointing out the sincerity of the state for the development of connectivity in north Bengal.

“The chief minister’s decision to waive the VAT since 2013 boosted air connectivity here. Also, she was instrumental in providing land for expansion of the airport and other projects like the Asian highways and four-laning of national highways. She has always been sincere in improving connectivity in north Bengal and people here have witnessed the change,” said Vedabrata Dutta, the TMC spokesperson of Darjeeling (plains) district.

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