To encourage aviation and tourism in West Bengal, the State government has cut the sales tax on jet fuel by 50 per cent for any new flight that an Indian airline wants to start from Kolkata and has made it tax-free for two other airports in the state.
The State government's rebate will come as a major relief for cash-strapped carriers. Jet fuel, or aviation turbine fuel (ATF), makes about 40-50 per cent of an airlines cost in India, and Kolkata will be the first metro airport to have listened to the plea of airlines for nearly a decade now to reduce sales tax. There will be a 50 per cent rebate on tax on additional ATF sold to any airline from the Kolkata airport compared with corresponding ATF consumed by the airline in 2012-2013, the a government note said
The West Bengal government said in a note on August 8 that it is incentivising the increase in the number of flights to and from Kolkata, Bagdogra, Coochbehar airports to promote tourism and travel in the state.