What a VAT in Amritsar!

AMRITSAR: Amritsar Vikas Manch (AVM) has feared that many airlines operating from Sri Guru Ramdas International Airport could suspend their operations if state government did not reduce VAT on air turbine fuel (ATF) from 22% to 4 % .

      AVM patron Charanjit Singh Gumtala told TOI on Monday that the government should also release Dr Manohar Singh Gill committee report which was prepared in 2009 to find ways and means to attract new airlines and to start more flights from Amritsar.

        He said there was 22% VAT on ATF in Amritsar, while it was only 4% in Chandigarh, "Airlines have to shell out Rs 6,000 more on per kiloliter of ATF in Amritsar as compared to Chandigarh. And in terms of one flight, it translates into a loss of Rs 3 lakh which is a major disincentive for the Airlines from starting operations from Amritsar," he said.

        In 2008 Jet Airways withdrew its Amritsar- London international flight. Singapore Airlines also stopped its operations fom February 2009 due to costly fuel and high landing charges in Amritsar as compared to Delhi .

     "For landing at Rajasansi Airport, the civil aviation ministry was charging Rs 154,000 per flight in Amritsar from Singapore Airlines as compared to Rs 75,000 by the Delhi airport. Similarly, Jet Airways was shelling out Rs 94,000 as landing fee for domestic flights compared to Rs 69,000 in Delhi in 2008" he said.

       BJP MP from Amritsar Navjot Singh Sidhu had launched an intensive agitation to restore these flights following which a Parliamentary panel headed by the then sports minister Manohar Singh Gill, former union minister and MP SS Dhindsa, Rajya Sabha member Tarlochan Singh and Airports Authority of India chairman PK Aggarwal visited the airport on December 16th 2008.

        After the visit, Manohar Singh Gill had stated that he would submit a detailed report to the civil aviation ministry to save the airport within a week. The panel also said that up-gradation of facilities at the airport in the next three months would attract airlines to resume services. But nothing has happened so far.