NEW DELHI: The proposal to reduce VAT on jet fuel to 1 per cent under the draft civil aviation policy should be extended to helicopters providing regional connectivity, according to non-profit group RWSI.
Rotary Wing Society of India (RWSI) works towards developing civil helicopter industry. As per its website, 90 per cent of helicopter operators are its members.
Under the revised draft policy, the Civil Aviation Ministry has proposed a slew of measures, including reduction of Value Added Tax (VAT) on jet fuel to 1 per cent or less, to boost regional air connectivity.
"The helicopters engaged in regional connectivity/ religious pilgrimage etc may also be included for 1 per cent VAT on ATF," the grouping said in its recent submission made to the ministry on the policy.
As per the policy, Regional Connectivity Scheme would be made operational only in those states which reduce VAT on ATF (Aviation Turbine Fuel) at airports to 1 per cent or less.
Besides, RWSI has sought inclusion of "heliports/helipads" under the plan to revive unserved and under-served aerodromes and airstrips.
The grouping has also suggested that custom duty rebate applicable on SCA (Scheduled Commuter Airline) and Scheduled Commercial Airline could be extended to helicopters.
In the much-awaited draft civil aviation policy, the ministry has mooted the concept of SCA for efficient regional connectivity.
The Civil Aviation Ministry has extended the deadline for submitting public comments on the draft policy till November 30. The earlier deadline was November 21.
The draft policy, unveiled on October 30, proposes to provide a conducive environment and a level playing field to all stakeholders.