The Ministry of Finance has given its nod for levying a two per cent fee on air tickets on metro routes and setting up a regional connectivity fund (RCF) to subsidise air travel between identified non-metro destinations.
The FinMin has also consented to waive central excise duty on jet fuel and service tax on tickets on regional routes to cap fares at about Rs 2500 per flying hour and give wing to the civil aviation ministry’s proposal to air link remote and regional areas under the revised regional connectivity scheme (RCS).
Sources in the ministry of civil aviation informed a charge of 2 per cent on all domestic and international flight tickets sold within the country is being considered for levy from Jan 1, 2016. The move will help generate around Rs 1,500 crore per annum in Regional Connectivity Fund (RCF) and will be utilised to provide viability gap funding (VGF) to airlines for capping fares at about Rs 2,500 per flying hour between non-metro destinations come April 1, 2016.
26/11/15 Sharmistha Mukherjee/Indian Express
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The FinMin has also consented to waive central excise duty on jet fuel and service tax on tickets on regional routes to cap fares at about Rs 2500 per flying hour and give wing to the civil aviation ministry’s proposal to air link remote and regional areas under the revised regional connectivity scheme (RCS).
Sources in the ministry of civil aviation informed a charge of 2 per cent on all domestic and international flight tickets sold within the country is being considered for levy from Jan 1, 2016. The move will help generate around Rs 1,500 crore per annum in Regional Connectivity Fund (RCF) and will be utilised to provide viability gap funding (VGF) to airlines for capping fares at about Rs 2,500 per flying hour between non-metro destinations come April 1, 2016.
26/11/15 Sharmistha Mukherjee/Indian Express
