New Delhi: Hopes of the Indian aviation industry marred by record losses on back of predatory pricing, high fuel costs, airport taxes and general policy paralysis were dashed today after finance minister Arun Jaitley did not come out with any big bang announcements for the sector.
It was hoping that the Narendra Modi-led government would slash taxes on jet fuel, exempt aircraft engines from customs duty and rationalise taxation on maintenance, repairs and overhaul (MRO).
"The aviation sector has been completely been ignored. Other than some decisions on airport infrastructure which need to be read in detail, the budget did not take care of any of problems of the sector. The sector was hoping for tax sops on ATF and MRO facilities so that the industry can come up in the country but this year's budget does not have anything for the sector and the neglect continues," said Dhiraj Mathur, leader Aerospace & Defence, PwC India.
Jet fuel constitutes about 40-45 per cent of the total cost of an airline. The airlines had sought exemption of aircraft engines from customs duty, the officials said, adding that the exemption which was withdrawn in 2012 should be reinstated.
11/07/14 Karan Choudhury/Telegraph
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It was hoping that the Narendra Modi-led government would slash taxes on jet fuel, exempt aircraft engines from customs duty and rationalise taxation on maintenance, repairs and overhaul (MRO).
"The aviation sector has been completely been ignored. Other than some decisions on airport infrastructure which need to be read in detail, the budget did not take care of any of problems of the sector. The sector was hoping for tax sops on ATF and MRO facilities so that the industry can come up in the country but this year's budget does not have anything for the sector and the neglect continues," said Dhiraj Mathur, leader Aerospace & Defence, PwC India.
Jet fuel constitutes about 40-45 per cent of the total cost of an airline. The airlines had sought exemption of aircraft engines from customs duty, the officials said, adding that the exemption which was withdrawn in 2012 should be reinstated.
11/07/14 Karan Choudhury/Telegraph
