HC seeks explanation on demand for fuel tax exemption for Karippur airport

Kochi:   High Court has asked the state government to give its explanation on the matter of special fuel tax relief denied to Karippur.  The Court's action came in response to a petition by Kondotty MLA,  TV Ibrahim. 

He argued that giving special concession to the newly established Kannur airport would be detrimental to Kozhikode airport.  When Kozhikode Airport,  owned by Airport Authority of India supplied aviation turbine fuel (ATF) to aircraft,  the tax rate applied as per Kerala General Sales Tax rules is 25 per cent,  which with the addition of surtax and cess will become 29.04 per cent, he pointed out.

However,  in the matter of Kannur airport,  which is only 130 milometers away,  this becomes just one per cent.  Naturally,  at such differential rates paid by airlines,  travel via Kozhikode will become more expensive and will in turn affect its viablity,  he contented.