Mumbai: While a journey in an aircraft costs you thousands of rupees, the same planes burn fuel and fly abroad without a single passenger on board for maintenance and periodic overhauling, to avoid paying huge amounts on maintenance and overhaul taxes and surcharges here. But this is expected to change.
Sources in the aviation ministry said Finance Minister Arun Jaitley, in the Union Budget that will be announced today, may grant relief in taxes concerning Maintenance Repair and Overhauling (MRO) of aircrafts and its components. Senior aviation officials said at least 15 per cent relief is being expected in service tax and 29 per cent in custom duty levied on consumables and tools used for MRO. Since fuel prices are currently fluctuating, civil aviation authorities feel that any reduction in MRO components might help bring down fares by Rs 2,500-4,000. Every aircraft undergoes mandatory periodic checks according to Director General of Civil Aviation (DGCA) rules. “At present the cost of maintenance is very high. Any respite in that would help convincing airlines to not go abroad. Only 10 per cent of the total international MRO market is in India,” said an aviation official. Sources added that air carriers like IndiGo, Jet Airways and SpiceJet get their MRO done abroad while GoAir only gets its components repaired here.
29/02/16 Neha LM Tripathi/Mid Day
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Sources in the aviation ministry said Finance Minister Arun Jaitley, in the Union Budget that will be announced today, may grant relief in taxes concerning Maintenance Repair and Overhauling (MRO) of aircrafts and its components. Senior aviation officials said at least 15 per cent relief is being expected in service tax and 29 per cent in custom duty levied on consumables and tools used for MRO. Since fuel prices are currently fluctuating, civil aviation authorities feel that any reduction in MRO components might help bring down fares by Rs 2,500-4,000. Every aircraft undergoes mandatory periodic checks according to Director General of Civil Aviation (DGCA) rules. “At present the cost of maintenance is very high. Any respite in that would help convincing airlines to not go abroad. Only 10 per cent of the total international MRO market is in India,” said an aviation official. Sources added that air carriers like IndiGo, Jet Airways and SpiceJet get their MRO done abroad while GoAir only gets its components repaired here.
29/02/16 Neha LM Tripathi/Mid Day
