The Ministry of Civil Aviation expects Indian international air safety ranking to return to Category I in a couple of months, Minister of State for Civil Aviation G.M. Siddeshwar said here on Saturday.
The Directorate-General of Civil Aviation has addressed the deficiencies related to the safety ranking. “In a month or two, we should move back from Category II to Category I,” he announced at a seminar here.
In January this year, the U.S. Federal Aviation Administration, which is considered the global standard, downgraded the national civil aviation regulator on the grounds that its safety performance did not match best international standards. Technically, a downgrade affects route expansion plans of Indian airlines that fly to the U.S. and will delay airport clearances for their flights there.
ATF tax
Mr. Siddeshwar said the Center had urged the State governments to rationalise their respective sales tax levies on aviation turbine fuel (ATF) to a uniform level; their responses were awaited.
States currently levy ATF taxes ranging from 4 percent to 33 percent, with Karnataka among the highest and Andhra Pradesh at 1 per cent. Airlines spend almost half of their revenues on jet fuel. “The Center is working with the States and talking to Chief Ministers to lower the tax structure and support the aviation industry,” Mr. Siddeshwar said.
He was addressing a seminar organized by the Society of Indian Aerospace Technologies and Industries.
Earlier, Chairman of Hindustan Aeronautics Ltd. R.K. Tyagi urged the Minister to look into the tax structure related to the aerospace MRO (maintenance, repair overhaul) sector.
- Source: http://www.thehindu.com
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