LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Budget 2019 expectations: How Modi government could bring aviation industry back on track

The Indian aviation sector is going through one of its toughest phases in the longest time led by the grounding of Jet Airways' operations. The grounding of Boeing 737 MAX-8 planes by domestic airlines and repair works at Mumbai airport have made things worse for the otherwise fastest-growing aviation market in the world.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Budget 2019 expectations: How Modi government could bring aviation industry back on track
To deal with these issues would be one of the most important things on Finance Minister Nirmala Sitharaman's agenda when she presents the Union Budget in the Parliament on July 5. Source - PTI.
Written By: ZeeBiz WebTeam
Updated: Fri, Jun 28, 2019
07:01 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
IndiGo's select flights from Mumbai Airport from March 10 IndiGo's select flights from Mumbai Airport from March 10
International Flights: Suspension of passenger flights extended till this date International Flights: Suspension of passenger flights extended till this date
Credit Suisse On Commercial Aerospace Outlook II Details Explained Credit Suisse On Commercial Aerospace Outlook II Details Explained
Spicejet Book Befikar Sale: Book tickets at just Rs 899; no cancellation fee* and free flight voucher Spicejet Book Befikar Sale: Book tickets at just Rs 899; no cancellation fee* and free flight voucher
Who is Air India Captain Zoya Aggarwal? Her pilot dream come true story is super inspirational Who is Air India Captain Zoya Aggarwal? Her pilot dream come true story is super inspirational

The Indian aviation sector is going through one of its toughest phases in the longest time led by the grounding of Jet Airways' operations. The grounding of Boeing 737 MAX-8 planes by domestic airlines and repair works at Mumbai airport have made things worse for the otherwise fastest-growing aviation market in the world. The impact is also being faced by the passengers as ticket fares have shot up. The ripple effects could also be witnessed in the hospitality and tourism sector. The high operating costs (taxes, fuel charges, and landing and parking rates) have been another challenge for the airlines.

To deal with these issues would be one of the most important things on Finance Minister Nirmala Sitharaman's agenda when she presents the Union Budget in the Parliament on July 5. Peeyush Naidu, Partner, Deloitte India believes the government should look to bring down the taxation on aviation fuel which would help reduce the operating costs.

"To bring down the high taxation on aviation fuel - among the highest in the world, the Government could consider bringing aviation turbine fuel (ATF) and other related fuels (used for commercial scheduled/non-scheduled operations and training purposes) under GST," he told Zee Business Online.

He added that higher taxes force the airlines to outsource a big part of the MRO business to international providers and this could change if GST rates are reduced.

"High taxes have led airlines to outsource 80-85% of the country’s $1.4 billion MRO business to international providers. The government must focus on reducing the tax burden impacting the growth of MRO industry by reducing GST rates, and removing instances of tax on certain items which attract an import duty as well as a GST over and above that," he said.

The government's decision to introduce UDAN (Ude Desh ka Aam Naagrik) with the objective of letting the common citizen of the country fly at affordable rates was welcomed by most. However, more could be done to promote the use of smaller aircraft under the scheme. 

"To provide a fillip to its marquee Regional Connectivity Scheme to improve air connectivity to remote areas, the Government should provide incentives/budgetary support in terms of promoting use of smaller aircraft under the scheme, providing additional funds for VGF support under the scheme, and developing airport and seaport infrastructure in Tier-II and Tier-III cities of the country," Naidu said. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
AviationUnion Budget 2019Budget 2019
RELATED NEWS
IndiGo's select flights from Mumbai Airport from March 10 IndiGo's select flights from Mumbai Airport from March 10
International Flights: Suspension of passenger flights extended till this date International Flights: Suspension of passenger flights extended till this date
Credit Suisse On Commercial Aerospace Outlook II Details Explained Credit Suisse On Commercial Aerospace Outlook II Details Explained
Spicejet Book Befikar Sale: Book tickets at just Rs 899; no cancellation fee* and free flight voucher Spicejet Book Befikar Sale: Book tickets at just Rs 899; no cancellation fee* and free flight voucher
Who is Air India Captain Zoya Aggarwal? Her pilot dream come true story is super inspirational Who is Air India Captain Zoya Aggarwal? Her pilot dream come true story is super inspirational

LATEST NEWS

Facebook removes 1,521 malicious accounts in Feb

Delhi to have its own school education board; Arvind Kejriwal says focus will be on providing jobs, proposes this unique exam pattern

Andhra Pradesh trade body to promote IP rights, registration for MSMEs

COVID-19: India records 18,711 new cases

Framework Agreement! India Grid Trust inks largest transmission deal with Sterlite Power

Mumbai-Ahmedabad Bullet Train: Tech bids open for bridge project - Check latest news development

US continues to see drop in new Covid cases

EaseMyTrip IPO Review: Issue opens on Monday! 'SUBSCRIBE' say experts; check details like important dates, price band, lot size, many more

ITC Share Price: Experts give 'share to buy' tag; predicts up to 25% profit in three months

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty support range, says investors should trade keeping volatility in mind

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved