New Delhi: In what might offer reprieve to the maintenance, repair and overhaul (MRO) aviation industry in India, the government is soon likely to put up a draft policy for public consultation, offering fiscal incentives to the heavily taxed sector.
To finalise the draft, a meeting of all stakeholders was held in the ministry of civil aviation (MoCA) on March 21. The policy is expected to be put up for public consultations this week.
“The policy aims at creating a level-playing field by giving tax exemptions to the MRO industry. The central government would have to give custom and service tax exemptions, whereas the states would provide exemptions from value added taxes and octroi,” said an industry source involved in the negotiations. MoCA has had several rounds of discussions with concerned ministries and departments, state governments, MRO industry, airlines, airports and other stakeholders to determine the norms in the draft policy.
Rajesh Bali, secretary, Business Aircraft Operators’ Association, said, “Due to its geographical position, India can be leveraged as a hub for MRO operations. But the tax structure in the country is such that even Indian carriers today find it cheaper to fly their aircraft overseas for service and repair.”
01/04/14 Sharmistha Mukherjee/Business Standard
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To finalise the draft, a meeting of all stakeholders was held in the ministry of civil aviation (MoCA) on March 21. The policy is expected to be put up for public consultations this week.
“The policy aims at creating a level-playing field by giving tax exemptions to the MRO industry. The central government would have to give custom and service tax exemptions, whereas the states would provide exemptions from value added taxes and octroi,” said an industry source involved in the negotiations. MoCA has had several rounds of discussions with concerned ministries and departments, state governments, MRO industry, airlines, airports and other stakeholders to determine the norms in the draft policy.
Rajesh Bali, secretary, Business Aircraft Operators’ Association, said, “Due to its geographical position, India can be leveraged as a hub for MRO operations. But the tax structure in the country is such that even Indian carriers today find it cheaper to fly their aircraft overseas for service and repair.”
01/04/14 Sharmistha Mukherjee/Business Standard
