AGARTALA, August 10 (TIWN): On the second day of the three long Monsoon session of the Tripura Assembly, MLA Gopal Chandra Roy on Monday raised the issue of the enormous increase in the fare of Airlines.

At the assembly hour, MLA Gopal Chandra Roy said that the operational cost of airlines has to be brought down and there is need to have look at tax of Aviation Turbine Fuel (ATF) as it ranges 18 percent.

Besides, he said that comparing to the other states in the country where the ATF tax is 6 percent, Tripura is stick to 18 percent of ATF tax.

Therefore, many aviation companies are not coming to the state to start their business. Besides, the flight fares are touching sky, giving chaotic time to the passengers.  

He also came up with an example saying that Air Aisa including two other aviation companies was willing to set their business in the state but due to heavy tax the companies are stepping out.

Earlier, Tripura government has slashed Value Added Tax (VAT) on the Aviation Turbine Fuel (ATF) by 4% with immediate effect. The move is aimed at attracting more private airlines and at the same time give relief to the passengers from paying exorbitant air fares.

The VAT on ATF has been reduced from 22 percent to 18 percent. Though, 4 percent of VAT has been reduced but compare to other states in the country the tax rate of ATF is very high.

The high tax rate in the ATF has been acting as obstruction for the aviation companies to set off.

Reacting upon the question of MLA Gopal Chandra Roy, Transport Minister Manik Dey said that fuel tax is not the main issue for the hike in flight fare. He said that the Aviation Companies set their flight fares according to their own wish.

Whenever they feel like the company increases the fare.

Minister Dey however said that earlier two MP’s meet with the central Ministry urging to bring control over the fares of the aviation but there also they said that the fare of the flights are managed by the aviation companies itself.

Suggesting upon the discussion, Opposition Leader Sudip Roy Barman said that if the tax of ATF has been decreased then the flight fare will automatically decrease and the aviation companies will be willing to start their companies in the state. Besides, they will also buy fuel from the state.