Regional connectivity cess gets legal nod

NEW DELHI : A key proposal of the aviation ministry to levy a cess that would be used to fund air connectivity to smaller towns and cities has got the law ministry’s

Published on: Sep 1, 2016, 10:38:04 IST

By Tushar Srivastava

Prefer HTon Google

Share via

Copy link

NEW DELHI : A key proposal of the aviation ministry to levy a cess that would be used to fund air connectivity to smaller towns and cities has got the law ministry’s approval.

Sources said the approval from the ministry of law and justice came last week and paves the way for the aviation ministry to move ahead with its ambitious regional connectivity scheme (RCS).

“There were fears that any move to impose a levy on flights on trunk routes to subsidise regional flights may be challenged in courts and hence law ministry’s view on the issue was very important,” said an aviation ministry official.

“We will now take a final decision on how this levy should be imposed,” said another official.

Government is considering a levy of ₹7,000-8,000 per domestic departure to build a regional connectivity fund (RCF).

An ₹8,000 levy per domestic departure on flights on all trunk routes will roughly translate into a hike of ₹60 in passenger fares, according to an internal ministry analysis and reported by HT on July 1. “An alternate proposal is to impose a 2% cent cess on tickets to fund regional flights,” the official said.

ABOUT THE AUTHOR
Tushar Srivastava
Tushar was part of Hindustan Times’ nationwide network of correspondents that brings news, analysis and information to its readers. He no longer works with the Hindustan Times.

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.