New Delhi: The government is likely to throw its weight behind a plan for short-distance flights at a fixed price of Rs 2,500 per hour by scrapping taxes and fees to help make the scheme viable.
With the finance ministry lending its support to the proposal, these measures are likely to be announced in the budget, said a senior civil aviation ministry official, who did not want to be identified.
The plan is to waive excise duty on jet fuel and service tax on tickets for the regional flights, which were announced in the civil aviation policy that was unveiled last week. Another charge that may go is the passenger services fee (PSF) of Rs 149 per ticket that's used to fund the cost of providing security at airports.
"The finance ministry has given its consent for the waiver of central excise duty of about 8% on fuel and service tax of about 4.94% on flights under the regional connectivity plan," said the official.
"These flights will also not have to pay any PSF... We have the consent of all stakeholders, including the finance and home ministries." Accord on the aviation ministry proposal was reached at a meeting of the committee of secretaries (CoS) set up to debate the policy.
04/11/15 Mihir Mishra/Economic Times
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With the finance ministry lending its support to the proposal, these measures are likely to be announced in the budget, said a senior civil aviation ministry official, who did not want to be identified.
The plan is to waive excise duty on jet fuel and service tax on tickets for the regional flights, which were announced in the civil aviation policy that was unveiled last week. Another charge that may go is the passenger services fee (PSF) of Rs 149 per ticket that's used to fund the cost of providing security at airports.
"The finance ministry has given its consent for the waiver of central excise duty of about 8% on fuel and service tax of about 4.94% on flights under the regional connectivity plan," said the official.
"These flights will also not have to pay any PSF... We have the consent of all stakeholders, including the finance and home ministries." Accord on the aviation ministry proposal was reached at a meeting of the committee of secretaries (CoS) set up to debate the policy.
04/11/15 Mihir Mishra/Economic Times
