The Himalayan Hospitality and Tourism Development Network (HHTDN) has requested Chief Minister Mamata Banerjee to roll back the Value Added Tax (VAT) on air turbine fuel (ATF) for Bagdogra Airport from the newly imposed 12.5% back to its previous rate of 0%. This follows a similar plea from Darjeeling MP Raju Bista. In a letter to the Chief Minister, HHTDN Secretary Samrat Sanyal outlined three major concerns, seeking her intervention. Mr Sanyal emphasised the sudden withdrawal of flights by airlines from the Bagdogra sector, fluctuating airfares during peak periods, and the implications of the increased VAT.

Mr Sanyal praised the West Bengal government’s visionary leadership that introduced a full waiver of VAT on ATF in 2013, a policy that benefited airlines over the past 11 years and contributed to Bagdogra Airport’s rapid growth. He said that the increase in VAT on ATF could lead to higher operational costs for airlines, resulting in increased airfares. “This, in turn, could negatively impact various sectors, including tourism, hospitality, retail, and local businesses reliant on strong air connectivity. “I respectfully request your kind intervention to reconsider and revert the VAT on ATF back to its initial rate of 0%,” HHTDN Secretary Samrat Sanyal said, adding: “Your consideration in this matter will ensure that the northern part of West Bengal remains an attractive destination for tourists and businesses alike.”

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Mr Sanyal further noted that even with the 0% ATF surcharge, the region has experienced high airfares during crises and other peak periods. Additionally, there have been instances of airlines reducing or withdrawing flights to and from Bagdogra without proper explanation. In July and August 2024, many direct flights to and from Bagdogra were reduced or withdrawn, and flight fares from Mumbai have risen to approximately Rs 14,000 per person one way from mid-September 2024. Mr Sanyal urged the Chief Minister to address this matter with the Ministry of Civil Aviation, highlighting the cascading effects of the policy on the region’s tourism movement.