The State Government on Thursday decided to waive value added tax (VAT) on aviation turbine fuel (ATF) for international flights coming to, leaving from or passing through the Biju Patnaik International Airport in Bhubaneswar.
The decision was taken at a State Cabinet meeting chaired by Chief Minister Naveen Patnaik at the State Secretariat here.
Briefing reporters after the meeting, Chief Secretary Gokul Chandra Pati said the Cabinet decided for complete waiver of VAT from all flights to and from Bhubaneswar.
“Though the Airport Authority of India has accorded international airport status to the Biju Patnaik Airport since October 2013, there has been no international flight from here till date. We have repeatedly requested the Centre to take a decision in this regard at the earliest,” Pati said.
He further said, “Though the FlyDubai Airlines was keen on launching its flight from Bhubaneswar, the Union Civil Aviation Ministry did not give it permission. The State Government, which had brought down VAT on ATF from 20 per cent to 5 per cent last year to encourage international airlines to start flights from Bhubaneswar, today decided to completely waive the VAT for international fights if they agree to use the city airport as the destination or for a stopover,” the Chief Secretary said. He, however, clarified that the VAT would remain at 5 per cent for domestic flights.
Pati said the Cabinet also cleared the new Special Economic Zone (SEZ) Policy for the State.
“The Centre, which had formulated a new SEZ Policy in 2007 following the approval of the Union Cabinet, had asked the State Governments to frame their own SEZ Policies. A new SEZ Policy framed by the Odisha Government in 2003 was scrapped later. Under the new SEZ Policy, the SEZ developer can sublet leased land to other industries. Besides, the industries coming under the SEZ will avail complete exemption on Stamp Duty, VAT and Entry Tax,” he said.
Thirdly, the Cabinet also approved a proposal for transfer of 107 acres of Government land leased out to the Jayashree Chemicals to the Aditya Birla Chemicals ltd. It also approved amendments to the Odisha Subordinate Staff Selection District Cadre Rules. Under the amended rules, employees in categories B and C having 4,200 grades would be selected for promotion.
Besides, the Cabinet approved a proposal to provide five acres of premium free Government land at Brajaviharpur Mouza under Athagarh tehsil in Cuttack district for setting up of a regional centre of the Maulana National Urdu University. However, the university would have to pay the annual rent on the leased land, the Chief Secretary informed. The Cabinet also approved amendment to Section 119 of the Odisha Municipal Corporation Act, 2003. Under the amendment, the municipal employees would be at par with the Government employees and avail pension benefits, Pati further informed.