Administration to reimburse the VAT component on Aviation Turbine Fuel

Port Blair, Dec.12: In an another initiative to increase frequency of flights and have more competitive/ lower air-fare on the Island-Mainland Sector, the A&N Administration has decided to reimburse the VAT component on Aviation Turbine Fuel (ATF) paid on those incremental flights (over and above existing number of flights), which are introduced on Port Blair Sector during the period upto 31st March 2019. This will be applicable from prospective effect. The re-imbursement of VAT component on the incremental flights will encourage the Airlines to introduce additional flights on the Island-Mainland Sector which will facilitate more competitive/ low air-fare on the sector.

A suitable mechanism for reimbursement of the VAT component to the airline operator is being devised by the Commissioner, VAT, A&N Administration.