Logistics

Budget will not deter import of aircraft by corporates

Our Bureau New Delhi | Updated on March 01, 2011 Published on March 01, 2011




The Finance Minister, Mr Pranab Mukherjee's, decision to levy a basic customs duty of 2.5 per cent on import of aircraft for non-scheduled operations is unlikely to deter imports.

Annually 35-40 aircrafts are imported for non-scheduled operations, and these are mostly brought in by large corporates to make better use of their time.

Industry experts point out that with a medium-sized private jet expected to cost about Rs 35-40 crore, the additional expenditure due to the Budget proposal is likely to be under Rs 1 crore. “We fail to understand the logic behind the move as with only about 35-40 such aircrafts being imported annually, the government is likely to collect under Rs 50 crore,” an industry expert said.

The Member Council, Aeronautical Society of India, Mr Debashis Saha, pointed out that despite the levy the Council is bullish on demand for both fixed wing aircraft and helicopters. “They open up more avenues for doing business not only within but also outside the country” he added.

Even industry experts feel that the additional payment is unlikely to deter the corporate. During calendar year 2010, Religare Aviation, Reliance Transport and Travel Private Limited, the Delhi-based Bharat Hotels, Jaiprakash Associate Limited and Reliance Commercial Dealers Limited were among the growing list of corporates that approached the Ministry of Civil Aviation for permission to import aircraft for Non-Scheduled Air Transport Services.

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Published on March 01, 2011
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