The Karnataka Chamber of Commerce & Industry (KCCI) here has urgedKarnatakaChief Minister to reduce tax on Aviation Turbine Fuel (ATF), like done by the Kerala Government, to makeMangaluru International Airport(MIA) attractive for new airlines to come and start operations.

In a letter to CMBasavaraj S. Bommai, Chamber President Isaac Vas pointed out that ATF is subsidized to as low as 1% in the neighboring state while it is as high as 28% in Mangaluru making it unattractive for new airlines to come and start operations. He said the Chamber has been advocating rationalizing/reducing VAT on ATF in Karnataka for a long time.

In August last year, the Kerala government reduced tax rate on ATF from 5% to 1% for alldomestic flightsin the State to encourage domestic air travel. The tax was reduced for domestic flights operating from the Kochi International Airport and the Kozhikode International Airport for a period of 10 years.