Aviation MRO Industry wants exemption from Excise, ST
CIVIL Aviation Minister Ashok Gajapathi Raju discussed issues pertaining to civil aviation with the representatives of the civil aviation industry in a pre-budget interaction meet yesterday. The Minister stated that air travel has a multiplying effect on economy and, therefore, decisions should be made to allow civil aviation sector to grow to its full potential. The different wings of the Government would come together to find solutions for the problems faced by the industry today, he assured.
The industry made several suggestions for the promotion of MRO (Maintenance, Repair and Overhaul) sector including removal of service tax, reducing VAT on MRO activities, ten-year tax holiday, abolition of central excise duty on MRO component etc. If these measures are taken, it was represented, there would be creation of one lakh jobs with more than a billion dollar revenues to the country on account of MRO activities.
Some years ago, Commerce Minister Kamal Nath had announced exemption from Service Tax for EOUs - Only he did not consult the more powerful Finance Minister. Let us hope this time around the Civil Aviation Minister will be able to convince the FM.