Bhubaneswar, March 23: The state government will set up a sales tax office at Biju Patnaik International Airport to facilitate cargo operations.

Authorities of the Biju Patnaik airport, Airports Authority of India and Industrial Promotion and Investment Corporation of Odisha Limited took the decision at a meeting held here last week.

The meet discussed the possibilities of developing a common user domestic cargo terminal that would spread across 5,000sqft.

The Utkal Chamber of Commerce and Industry, a representative body of industries and business consultants in the state, Federation of Indian Chamber of Commerce and Industry, various air service providers and around 20 cargo agents also attended the meeting. They spoke about the airport's immense potential and wanted the state to take full advantage of it.

The airport director apprised the corporation's chairman and managing director Sanjiv Chopra of the perpetual under utilisation of air cargo transport due to lack of awareness among the trade and business fraternity of the state.

The immediate need for a sales tax officer at the airport was also discussed. Chopra said a sales tax officer would shortly be deployed at the airport. He also sought suitable space for a sales tax office at the airport.

"The presence of a sales tax office at the airport will solve many problems, as people would not have to go to the sales tax head office in the city. This would save a lot of time," said a senior officer.

Airport director Sharad Kumar said: "Air cargo transportation is cheaper and faster than any other modes of transport. It is highly suitable for perishable commodities, as it consumes less time. Traders must come forward to tap this opportunity."

An official said the airport was capable of transporting 600 tonnes of cargo a day, but only around 150 tonnes were being routed through it every day - which is way below the national average. Besides, increased air cargo means higher sales tax collection by the state government. At present, the state government collects around Rs 150 crore as sales tax, but an increased air cargo could multiply it several times.

Stating that presently e-commerce shipments were taking place through air cargo, Kumar urged the traders to come forward and use the air cargo facilities. He said traders dealing with seafood, betel leaves and other perishable products would benefit most through air cargo shipments.

"The opening of a sales tax office at the airport will help traders to transport their goods on a larger scale and ensure higher revenue for the state government," said Kumar.