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Tax on aircraft acquisition worries aviation industry
Our Bureau
New Delhi
,
Aug. 2
THE top brass of the domestic civil aviation industry met with the Secretary Civil Aviation, Mr Ajay Prasad, to again voice its concerns on the impact of the Budget proposals on the sector.
The domestic aviation industry has been troubled with the Budget announcement of taxing any payment made by an Indian company to acquire an aircraft or aircraft engine on lease from a foreign state or foreign enterprise. The new tax is to come into force from September 1 this year.
Speaking to newspersons after the meeting, the Sahara Airlines President, Mr Rono J. Dutta, said that the meeting was held to convey the concerns of the industry.
He added that the impact of the Government's decision to tax any payment made for leasing of aircraft or engine would vary from $5 million to $30 million for the various players in the market.
"There is hardly any country from which any airline can import without paying the tax. The level of taxation could vary from 10 per cent onwards," Mr Dutta said.
He added that through the Ministry of Civil Aviation the industry would now try and impress the Ministry of Finance to reconsider the Budget proposals.
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