Home » Enhance plan allocation | Budget 2013-14

Enhance plan allocation | Budget 2013-14

Enhance plan allocation | Budget 2013-14

Aviation Finance Corporation (AFC), an SPV providing dedicated capital,can be set up by the government to facilitate lower interest rates and longer maturity of loans. Private airport operators should be allowed to issue long term non-taxable infrastructure bonds to raise the required funding from the market. RBI limits on sectoral funding should be eased, thereby removing the current compulsion for airport developers to raise required funds/debt from multiple banks, making process time consuming and cumbersome. Special mechanism needed for easing cash flows issues arising from delayed Receivables from related government entities, such as Air India/Indian Airlines. Enhance Plan allocation for Air India and implement robust measures for quick disbursement to affected airport operators and agencies. Permission to issue concessional 'C' forms u/s 8(3)(b) of the Central Sales Tax Act, 1956 thereby lowering end-user costs. ATF to be classified as 'declared goods' under the Central Sales Tax Act, which would ensure uniform sales tax of 4 per cent on aviation fuel. Specific exemption with respect to the X-ray baggage inspection system and other airport security systems from customs duty. Specific income tax exemption on security component of Passenger Service Fee (PSF),which consists of PSF Facilitation (PSF-FC) and PSF Security (PSF-SC).


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