CII’s National Committee on Civil Aviation expressed dissatisfaction over the Union Budget 2013-14 as it feels that the budget has not done enough to boost the aviation sector.
Even as it welcomed the the concessions granted to the MRO (Maintenance, Repair and Overhaul) sector, it noted that MRO industry is “small right now taking the aircraft population into account.
Peeyush Naidu, director of Deloitte Touche Tohmatsu India, said the budget has proposed to provide certain concessions to the MRO industry “which is a welcome step”.
The CII committee said that the budget has not addressed the contentious issues like sales tax on aviation turbine fuel.
The CII committee expected the budget to promote regional connectivity by developing airports in Tier-II and III cities.
Amber Dubey, Head-Aviation at KPMG in India, said “It has been a disappointing budget for aviation. There were expectations of relief in ATF and MRO taxes and funding support for regional airports.
All dashed, except for a minor correction in the duty- free period for import of spares and test equipment for MRO. Aviation sector would continue to struggle till fundamental policy changes on the taxation front are brought in.”
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