Mumbai: Private airport operators have sough tax relief in the forthcoming budget on the grounds that airports help in easy connectivity apart from boosting tourism.
In a memorandum to the Finance Ministry, the Association of Private Airport Operators (APAO) urged the government to allow private airports to raise funds through tax-free bonds and sought a host of exemptions, besides a reduction in service tax. It asked the government to provide fiscal incentives to upgraded airports on the lines of those granted to greenfield airports.
It also asked for extension of tax holiday for airport support/ ancillary services such as fuel facility, parking, cargo and ground handling, essential for smooth functioning.
Though all companies are mandated to pay minimum alternate tax, the association sought exemption for airport projects as these have a long gestation period and are capital-intensive.
“Alternatively, if outright exemption is not granted, infrastructure projects like airports should at least have a concessional MAT rate of 5 per cent of book profits instead of the merit rate of 21.34 per cent,” said Satyan Nayar, secretary general, APAO.
11/02/16 Lalatendu Mishra/The Hindu
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In a memorandum to the Finance Ministry, the Association of Private Airport Operators (APAO) urged the government to allow private airports to raise funds through tax-free bonds and sought a host of exemptions, besides a reduction in service tax. It asked the government to provide fiscal incentives to upgraded airports on the lines of those granted to greenfield airports.
It also asked for extension of tax holiday for airport support/ ancillary services such as fuel facility, parking, cargo and ground handling, essential for smooth functioning.
Though all companies are mandated to pay minimum alternate tax, the association sought exemption for airport projects as these have a long gestation period and are capital-intensive.
“Alternatively, if outright exemption is not granted, infrastructure projects like airports should at least have a concessional MAT rate of 5 per cent of book profits instead of the merit rate of 21.34 per cent,” said Satyan Nayar, secretary general, APAO.
11/02/16 Lalatendu Mishra/The Hindu
