The Indian government is formulating a comprehensive package for the aviation sector aimed at reducing user fees, easing regulations, and offering tax concessions, as per reports of Mint. The initiative, spearheaded by Niti Aayog, involves collaboration with multiple ministries, including aviation, commerce, finance, petroleum, home, and environment.
Key components of the proposed package include:
- Reduced User Charges and Tax Concessions: The finance ministry is expected to review tax concessions, particularly on aviation turbine fuel (ATF), while the petroleum ministry is negotiating with states to rationalize VAT on jet fuel.
- Regulatory Easing: The civil aviation ministry is working on route allocations and relaxing regulations for new airlines, aircraft acquisitions, and route expansions. There is also a proposal to simplify hiring norms for foreign pilots.
- Sustainability and Infrastructure: The environment ministry will ensure the package aligns with sustainability norms, while state governments are expected to contribute to the development of regional airports.
- Passenger Convenience: The package may also focus on relaxing norms for digital ticketing, security checks, and customer service enhancements to improve passenger experience.
- Trade Alignment: The commerce ministry aims to integrate the package with India’s trade goals and attract foreign investment.
The government also plans to address high ATF prices, which remain above global standards, through consultations with states and oil marketing companies. Route optimization, reduced user charges, and improved immigration and security protocols are additional focus areas.
An official announcement is expected in the coming months, following further inter-ministerial discussions. If implemented, this package could significantly enhance the aviation sector’s economic viability and passenger convenience, fostering growth and competitiveness.
Disclaimer: The information provided is based on reports of Mint and has not been independently verified by Business Upturn. It should not be considered final or confirmed until official announcements are made.
