Ailing airlines may not get budget aid

Like the past, the Union Budget next week is unlikely to bring smiles for India’s aviation czars, whose accountbooks are currently painted in deep red, reports Lalatendu Mishra.

Like the past, the Union Budget next week is unlikely to bring smiles for India’s aviation czars, whose accountbooks are currently painted in deep red.

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The industry’s wishlist is long. In repeating an old demand, it wants aviation turbine fuel (ATF) in the “declared goods” category that would entail some benefits that inputs used by infrastructure industries do, but then, the Finance Ministry may be unimpressed because is considered elitist, say industry experts.

“I don’t expect anything significant from the budget because aviation is not a priority sector for the government. There are so many things to be taken care of,” said Kapil Kaul, CEO (South Asia), Centre for Asia Pacific Aviation, a global aviation consultancy.

A “declared goods” status would mean that airlines will pay a uniform 4 per cent sales tax on purchases of ATF instead of the 28 to 34 per cent currently levied by different states.

Airlines also want to use “Served from India Scheme” licences to avoid excise liability on ATF and service tax.