‘Budget could have been better for Aviation’

Mumbai: While it is nobody’s contention that the Union Budget thoroughly disappointed the aviation industry, Civil Aviation Minister Praful Patel on Thursday echoed the industry’s sentiments. “The Budget could have been much better as far as aviation is concerned,” said Patel at a videoconference in Mumbai.
For a sector growing at over 25 per cent annually, the industry seems to have failed to blip on Finance Minister P Chidambaram’s radar. His most grand gesture was the increased allocation for all public sector enterprises under the Civil Aviation Ministry, which was increased from Rs 2,256.36 crore to Rs 12,192.09 crore. However, the additional money is primarily to fund the fleet acquisitions of Air India and Indian.
Meanwhile, the industry, which has been keenly lobbying with the Finance Ministry to categorise aviation turbine fuel (ATF) as a declared good under the Central Sales Tax Act, which would translate into a homogenous four per cent sales tax rate for the fuel across states, was expecting a better deal.
01/03/07 Mumbai Newsline

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Categories: General Aviation Mar 2007