Training, charter aircraft exempt from import duty
The government on Thursday exempted aircraft used in training, non-scheduled and chartered operations from import duties to give a fillip to the booming aviation sector and improve connectivity with remote areas.
By PTI |
NEW DELHI: The government today exempted aircraft used in training, non-scheduled and chartered operations from import duties to give a fillip to the booming aviation sector and improve connectivity with remote areas.
The Union Budget 2007-08 had proposed to levy 3 per cent customs duty, 16 per cent counter-veiling duty and 4 per cent additional customs duty on import of all aircraft, except those bought by state-owned airlines.
However, Finance Minister P Chidambaram today announced exempting aircraft imported for training purpose by flying clubs, non-scheduled point-to-point and non-scheduled charter operators from the duties.
"Since civil aviation is a nascent and growing industry, it has been decided to accept this request (of Ministry of Civil Aviation) and exempt these categories also from the duties," Chidambaram said while replying to the debate on Finance Bill 2007-08 in Lok Sabha.
Civil Aviation Ministry had asked Finance Ministry to roll back the tax proposal, saying the move contradicted the government's objective of promoting connectivity to remote areas and tourism and was bound to increase operational costs.
Welcoming the decision, Civil Aviation Minister Praful Patel said: "This relief will help in promoting connectivity to remote areas, including the North-East and the islands, and to remote tourist destinations".
It would also help in the economic development of these areas and promote tourism, he said.
Besides, this would promote training institutions and help meet the shortage of pilots the aviation sector is facing. Further, helicopter services operated by non-scheduled operators in Andaman and Nicobar Islands and Lakshadweep, North-East would also benefit, Patel added
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