SRINAGAR: Refuting concern expressed by the opposition that hike in Aviation Turbine Fuel (ATF) tax will lead to a decrease in tourist flow to the state, Finance Minister Haseeb Drabu said the increase in the tax is not related to air fare.
Meanwhile, he said the ATF used in helicopters, which ferry pilgrims to various religious destinations, including Mata Vaishno Devi and Amarnath cave shrine in South Kashmir Himalayas in the state, have been exempted from the hike.
“It is out of my understanding how will it impact the tourist flow as the hike in ATF is not linked to the increase in air fare. In last budget, we reduced the ATF tax from 25 per cent to 20 per cent, hopping that it will positively increase the sale of fuel and will decrease Air fare, but nothing happened. In fact, the revenue generated by ATF sale shrunk from Rs 80,000 crore to Rs 50,000 crore,” Dr Drabu said while replying to the Budget 2016-17 discussion in the Legislative Assembly today.
However, he said the fuel used in helicopters will be exempted from this tax hike. “To give relief to pilgrims tourism, the government has decided not to increase the tax on ATF given to Helicopters, which ferry pilgrims. This step has been taken so that the fare doesn’t increase, as it is linked to the fuel cost,” he added. (AGENCIES)
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