The Hindu Business Line : Kerala Minister hints at ATF tax cut

A LONG pending demand to reduce airfares on the Gulf-Kerala sector by expatriate Keralites residing in the Gulf States could be fulfilled if a budget proposal to reduce aviation turbine fuel (ATF) tax by the Kerala Government is passed soon.

The State Minister for Tourism, Mr K.V. Thomas, who was on a visit to the UAE last week in connection with the ongoing Dubai Shopping Festival, told Business Line that there was a budget proposal to reduce tax on ATF in Kerala. At present, the State levies 34 per cent tax on ATF with an additional 15 per cent surcharge on the tax, making it one of the highest in India.

The move could see a drop in airfares to the State, as Indian international carriers had cited the high ATF tax as one of the reasons for higher fares on the Gulf-Kerala sector.

Non-resident Keralites have been regularly submitting recommendations to both the State and Central Governments to reduce the airfares on the sector, citing similar distances on other routes as being much cheaper. Mr Thomas said the State Government had asked the Centre for a reasonable reduction in airfares. "It is not economical to reduce the fares significantly on profitable routes. We have sought a reasonable reduction in fares," he said.

On demands by NRIs to scrap the users' fee at Kochi International Airport, Mr Thomas said the fee might not be scrapped as it is a "people's airport."

He added that the civil aviation authorities were taking several positive steps to boost air connectivity to the State. The Minister also indicated that moves were on to promote health and education tourism. "Kerala has a number of quality educational institutions, which we plan to project to foreign students, particularly those hailing from the SAARC and South Asian countries.

In the field of health, we not only have top quality ayurvedic centres but also modern allopathy-based hospitals, where visitors can get treatment for a number of major health problems. These services will cost one-fifth of similar treatments in the UK and elsewhere in the West," he said.

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