Panaji, Apr 27 (IANS): Shop in Goa and don't pay any value added tax (VAT) on purchases from October. That's the incentive that the government in this tourism-oriented state is offering to foreign tourists in a bid to make Goa a premium shopping destination like Dubai.

Speaking to reporters after a cabinet meeting Friday, Chief Minister Manohar Parrikar said the VAT-free shopping experience will become a reality by the time the tourism season begins in October this year.

"We are working out the modalities. First, the scheme will be applicable to foreigners who will be refunded the VAT at airport special counters when they are on their way out of Goa. The scheme will be extended for Indian tourists too later," Parrikar said.

The scheme had been one of the innovations in the chief minister's budget speech earlier this year.

Goa annually receives 2.5 million tourists annually out of which half a million are tourists mostly from Russia and Britain.