Govt exempts aviation gas from customs, excise duties

NEW DELHI: Aspiring pilots training in flying clubs across the country can have some respite as the finance ministry has decided to fully exempt aviation gas from customs and excise duties. Imported aviation gas carries a basic customs duty of 20% and a countervailing duty of 16%. The excise duty rate is also 16%.
The decision on duty waiver is also expected to help the defence forces which uses over 65% of the aviation gas imported into the country.
The proposal to grant a customs and excise duty exemption on this fuel was mooted by the civil aviation ministry, which had made out a case for pruning the tab picked up by trainee pilots. Government officials claimed that the revenue impact of the duty exemption was not significant.
Last year, the government had scrapped the special excise duty of 16% on aviation gas to make trainer flights cheaper and enable pilots to train within the country instead of going abroad. Aviation gas is used as fuel for single engine and twin engine trainer aircraft operated by training academics.
Trainee pilots have to complete mandatory flying for certain number of hours to keep their license valid.