2 days Ago
As finance minister Nirmala Sitharaman prepares to unveil the Union Budget 2024-25 later this month, the civil aviation industry expects policy interventions aimed at ease of business and reducing the tax burden on the sector. In a memorandum, private airport operators have sent the government several suggestion pertaining to rationalisation of both direct and indirect tax structure. A copy of the memorandum has been reviewed by Mint.
In the memorandum, the Association of Private Airport Operators, whose members include GMR-run Delhi International Airport Ltd, and Adani-operated Mumbai International Airport Ltd, has requested the finance ministry to issue specific clarifications regarding tax charged by airlines on user development fee, which is paid by passengers. “Since airlines are acting just as a collection agent, they should not deduct tax at source on such an amount while making payment to airport operator. It leads to blockage of working capital of the airport operator,” the private airports body said.
Read more: GST Council to decide on waiving disputed tax liabilities under new provision Further, the grouping has also requested the government to increase duty-free allowance to ₹ 100,000 for purchase from a duty-free shop in India, from the current ₹ 50,000, a limit that was fixed in April 2016. In line with inflation and to increase foreign earnings, the association has also requested the government to allow duty-free shop operators to sell domestic Indian l.
