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Plea to cut ST on aviation fuel

By Our Staff Reporter

THIRUVANANTHAPURAM, JAN. 19. The Tourism Minister, K. V. Thomas, has said the Tourism Department and the Union Government has recommended to the State Government to reduce the Sales Tax on Aviation Turbine Fuel (ATF) and to make it on par with neighbouring States.

Addressing a press conference here today to announce the State awards for the best performers in travel and tourism industry during 2002-2003, Prof. Thomas said it was now left to the State Finance Minister to take a decision to reduce the Sales Tax on ATF, which is one of the highest in the country. In addition to the 34 per cent ST on ATF in Kerala, the Government was charging 15 per cent on the sales tax.

The Minister said the reduction of the ST, as done by the Andhra Pradesh Government, to just four per cent would enable the airports in the State to attract more flights for refuelling and encourage more airlines to operate to the three airports of the State.

The tourism sector of the State is going to get the maximum benefit once the ST on ATF is reduced by the Government.

Replying to questions, Prof. Thomas said the State tourism industry had witnessed the best tourist season so far this year with the arrivals going up by an estimated 30 per cent compared to the previous year.

Till November, the increase in arrivals in the State was 28 per cent compared to the 14.6 per cent increase in the country. The State will be able to go ahead if it can maintain a growth rate of around 9 per cent in the tourism sector.

The Tourism Minister said the thrust of the tourism sector will on eco-tourism in the coming days and the projects will be "of the people". Prof. Thomas said the ambitious Wagamon and Pathiramanal projects would be taken up without affecting the ecosystem and only after convincing the local people and the people's representatives.

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