UDF alleges bias in ATF tax relief to Kannur airport

Alleging bias in the tax cut on aviation fuel announced for Kannur airport, opposition UDF Monday demanded in the Kerala assembly that the LDF government extend the relief to the three other airports in the state.

Chief Minister Pinarayi Vijayan defended the decision to levy only one per cent tax on aviation turbine fuel (ATF) for airlines operating from the Kannur airport, saying it was given as a support to the newly commissioned airport.

The Congress-led UDF members, who claimed that Kannur airport had been given the relief because it was in Vijayan's home district, staged a walkout in protest after not getting any assurance from the government on their demand.

Earlier, raising the issue, they said the decision was 'discriminatory' as reduction of the tax to one per cent had been a long-pending demand of the managements of the three other airports -- Kochi, Thiruvananthapuram and Karipur.

UDF also alleged that Vijayan was showing "over enthusiasm" to support the new airport in Kannur as it was his home district and said he should act as the "chief minister of Kerala, not of Kannur district alone".

In his reply, Vijayan said: "It is true that we have reduced the tax on ATF to one per cent for airlines operating from Kannur. It is to support and encourage the newly commissioned airport and as part of including it in the Centre's UDAN (regional connectivity) scheme."

Detailing various steps taken by the government to support other airports, especially the Karipur airport in Kozhikode district, he accused the opposition of not extending support to the land acquisition initiative for the development of the airport.

However, he evaded the repeated question of the UDF on why the government had not implemented the decision of its own cabinet in 2017 to reduce the fuel tax to 5 per cent for airlines operating service from all airports in the state.

M K Muneer (IUML), who sought to move a notice for adjournment motion over the issue, said the government's decision to provide fuel tax breather to the Kannur airport alone would destroy the nearby Karipur airport.

"Three flights have already suspended service from Karipur. We fear that, if the situation continues, the airlines will boycot this (Karipur) airport and it will end up as a facility to operate chartered flights alone in future," he said.

Noting that Karipur airport was the lone public sector airport in the state now, he said if the government reduced the fuel tax to one per cent, it would be a great relief for the struggling airport.

The IUML legislator also offered all support to the government, which is envisaging to acquire 136 acres of land, for the dvelopment of the table-top Karipur airport.

Leader of the Opposition Ramesh Chennithala said that by reducing the ATF tax to one per cent, the state airports could woo more airlines, which in turn would help the government enhance its tax revenue.

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He said the UDF was not against supporting Kannur airport, but the Left government should show the same concern to other airports also.

The opposition staged a walkout after Speaker P Sreeramakrishan denied permission for the motion.