Goa government will refund Value Added Tax (VAT) to foreign tourists on goods bought in the state while they return to the airport, from November this year onwards, Chief Minister Manohar Parrikar said here on Friday.

Parrikar-led cabinet cleared the amendment to the Goa Value Added Act, 2005, today giving rights to the government to formulate a scheme to provide VAT refunds to foreign tourists visiting the state.

Parrikar told reporters that from November this year onwards, the facility would also be available to foreign tourists and later it could be extended to domestic tourists, once it is tried and tested with foreign guests.

The state cabinet passed the amendments today which would be tabled before the state legislative assembly during the ongoing session next week.

The chief minister said that the scheme aims to develop Goa as a shopping destination. The state government intends to refund VAT only on high-value goods and not on small ones, purchased in the state.

Parrikar said the facility will attract brands of high value to hold exhibitions in the state. The chief minister stated that the state government is formulating the exact scheme, which will refund the money to the tourists only when they present valid tax invoice at Goa airport.

Under the same scheme, the Goa government is working out modalities to refund VAT on aviation turbine fuel (ATF), subject to a minimum VAT of 0.5 per cent, on the basis of a progressive increase of passengers by airline carriers in a year.

“This scheme will also be implemented from October onwards, which is tourist season,” he said, adding that such a step would help increase flights landing in the state.

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