Bista slams Bengal govt’s 12.5 per cent VAT on Air Turbine Fuel at Bagdogra
The Statesman | 4 August 2024
Darjeeling MP Raju Bista on Saturday criticised the West Bengal government’s decision to impose a 12.5 per cent value-added tax (VAT) on air turbine fuel (ATF) at Bagdogra airport, warning it poses a significant threat to the aviation industry’s recovery. Mr Bista argued that instead of supporting the tourism sector with performance-linked incentives and additional subsidies, the government has chosen to increase flight costs through the VAT, potentially deterring both local travellers and tourists.
He stated: “This decision will inevitably increase flight costs from Bagdogra, which could deter people from our region and tourists and undermine the ongoing recovery efforts in the tourism industry.” The MP urged the government to prioritise measures that foster growth and recovery in the tourism sector rather than imposing burdens that could stifle its potential and the economic benefits for the Darjeeling Hills, Terai, Dooars, and North Bengal regions. Bagdogra airport, the only operational civilian airport in North Bengal, serves over 8,000 passengers daily, with over one million passenger arrivals recorded in the past year. Currently, around 40 flights operate from Bagdogra, and with a new terminal upcoming, flight numbers are expected to rise significantly.
“The present growth represents the potential of our region for attracting highvalue tourists. The imposition of this VAT is a shortsighted move that disregards the crucial role of tourism in our economy. It is therefore essential for the West Bengal government to reconsider this antitourism policy and provide necessary support to ensure the sustainable growth of our tourism sector,” Mr Bista added. The tourism industry is the second-largest employment-generating sector in the region, following the tea industry.