Budget 2021: The aviation industry needs tax cuts and airport fare relief

Aviation experts badly damaged by the corona crisis are looking at the general budget with high expectations. It is believed that Finance Minister Nirmala Sitaram will be able to announce a number of remedies including tax exemption to revive the aviation sector from the corona crisis.

According to experts, the finance minister should announce in this year’s budget to bring air fuel under GST. With this, airports should be reduced, excise duty on fuel should be reduced, overflow charges should be reduced.

The income tax rate for companies is low
Kanika Tekriwal, chief executive and founder of JetSeto Aviation, a New Delhi-based private jet operator, said the budget should reduce the income tax rate for travel companies. In addition, the tax exemption must be increased by at least one year to fully recover from the corona crisis. In addition, the GST rate on private charter or commercial flights must be 5%, increasing the number of passengers.

21 thousand crores is likely to be lost
According to the rating agency Iqra, the aviation industry is estimated to be worth around Rs 21,000 crore in the current financial year due to the corona crisis. At the same time, from 2021 to FY23, an additional Rs 37,000 crore is needed to cover this loss and increase business.

Many proposals have been sent to the Minister of Finance

A senior airline official, who does not name, said that the airline industry has sent a number of proposals to the airlines, including easy rules, the right to operate flights on loss-making routes, and ticket prices. In view of Corona this year, some key suggestions are expected to be approved. If the government takes any concrete steps, the airline will soon be back on the runway.

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