Civil Aviation Ministry submits “pre-Budget recommendations”
For the Budget of the newly-formed National Democratic Alliance government, the Civil Aviation Ministry has submitted a number of proposals such as tax-free bonds for constructing low-cost airports in small towns, inclusion of aviation turbine fuel (ATF) in declared goods, and an infusion of Rs 1,600 crore as additional fund to Air India.
Along with the mentioned proposal, the Civil Aviation Ministry has also recommended that the Airports Authority of India should be allowed to increase tax-free bonds for construction of low-cost airports. In addition, it has also been proposed that the custom duty credit scheme should be extended to airports.
According to a senior official, the demands have been submitted by the Civil Aviation Ministry to the Finance department for inclusion in the Budget on the basis of the inputs which the Ministry has received from airlines and airports.
The removal of high taxes on ATF has been sought by the airlines as these taxes apparently cause huge losses to the airlines.
Revealing that the Civil Aviation Ministry has submitted its “pre-Budget recommendations,” an official of the Ministry said: “We are suggesting that ATF be notified as a declared good, which will result in imposition of a flat four per cent sales tax. Other suggestions pertain to opening access for transport of ATF and transparency in aviation fuel pricing.”
Source – Business Standard
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