Assocham seeks infrastructure status for airports

Chennai/ Bangalore: Industry body Associated Chambers of Commerce and Industry of India (Assocham) on Monday called for granting infrastructure status to airports, besides classifying aviation turbine fuel (ATF) and cement as declared goods to bring a uniform tariff structure across the country.
This will facilitate emergence of airports as hubs and lower tariffs for passengers. The Indian aviation industry is being adversely affected as tax rates on ATF vary substantially from state to state, Assocham said.
"ATF comprises nearly one-third of an airline’s operating cost and hence may be brought under the ambit of Goods and Services Tax (GST),” said D S Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (Assocham), in its pre-budget memorandum for the Union Budget 2012-13. He also called for clarity on applicability of GST for imports meant for warehousing to be sold at duty free shops in airports. Emergence of low cost carriers has led to a boom in air travel and the number of passengers at Indian airports is expected to grow to 450 million by 2020.
Thus huge investments are required to develop, modernise and expand the airport infrastructure. Tax holidays for initial years, concession tariff for certain services like electricity use and moderate rates of customs duty, excise duty, value added tax and sales tax will attract investments.
10/01/12 Business Standard

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Categories: airports Jan 2012, New Jan 2012