New Delhi: Aviation and tourism industry experts today gave a mixed reaction on the Union Budget.
Terming the budget as "overall, a well-balanced, pro-poor, pro-growth budget" Amber Dubey, Partner and Head (Aerospace and Defence) of KPMG in India said the announcement of select AAI airports in Tier 2 cities to be taken up for operation and maintenance in PPP mode is a development step.
"It will bring in greater efficiency, best practices and accountability. Higher commercial revenues will help reduce aeronautical charges and make flying more affordable," he said.
Finance Minister Arun Jaitley in his budget speech said that the AAI Act will be amended to enable effective monetisation of land assets.
"Many AAI airports especially at state capitals have significant commercial value. The revenue generated can be utilised for airport upgrade, development of new regional airports and for reducing aeronautical charges," Dubey said.
"Under Regional Connectivity Scheme (RCS) viability gap funding (VGF) will be exempt from service tax for a period of one year from the date of commencement of operations of RCS airport. This should be extended to the entire duration of the VGF since by definition, the VGF is the subsidy paid by the government to make regional connectivity viable. A subsidy cannot be treated as taxable revenue," he added.
Abolition of FIPB is a welcome step, he said adding there are enough checks and balances at Civil Aviation Ministry and DGCA to keep any undesired foreign investors out.
To Read the News in Full 01/02/17 PTI/Zee News
Terming the budget as "overall, a well-balanced, pro-poor, pro-growth budget" Amber Dubey, Partner and Head (Aerospace and Defence) of KPMG in India said the announcement of select AAI airports in Tier 2 cities to be taken up for operation and maintenance in PPP mode is a development step.
"It will bring in greater efficiency, best practices and accountability. Higher commercial revenues will help reduce aeronautical charges and make flying more affordable," he said.
Finance Minister Arun Jaitley in his budget speech said that the AAI Act will be amended to enable effective monetisation of land assets.
"Many AAI airports especially at state capitals have significant commercial value. The revenue generated can be utilised for airport upgrade, development of new regional airports and for reducing aeronautical charges," Dubey said.
"Under Regional Connectivity Scheme (RCS) viability gap funding (VGF) will be exempt from service tax for a period of one year from the date of commencement of operations of RCS airport. This should be extended to the entire duration of the VGF since by definition, the VGF is the subsidy paid by the government to make regional connectivity viable. A subsidy cannot be treated as taxable revenue," he added.
Abolition of FIPB is a welcome step, he said adding there are enough checks and balances at Civil Aviation Ministry and DGCA to keep any undesired foreign investors out.
To Read the News in Full 01/02/17 PTI/Zee News
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