BAOA for lesser import duty on new planes in non-biz category

Business Aircraft Operators Association (BAOA) today requested the Centre to consider bringing down import duty on purchase of new aircraft under the non-commercial category.
BAOA President Jayant Nadkarni also said the draft Civil Aviation Policy, which was put up by the Central government for public comments, does not address the concerns of the business and private aircraft operators.
Nadkarni claimed that there are about 600 aircraft, including choppers, under business category and the current growth is at 0 to 2 per cent against minus 1 per cent last year.
"It's not going to be hockey stick growth for the sector (in the coming years). We are working with the government. The biggest thing that government can do is reduce import tax.

"Because of the huge import duty, people are deferring purchases. The import duty for private category is 20 per cent. For commercial category, the tax is 2.5 per cent. We want rationalisation," Nadkarni told reporters.
He said if the government reduces rate of tax, more aircraft will be bought in the country, which would create more jobs.

Responding a query on the draft policy announced by the Ministry of Civil Aviation, Nadkarni said it has failed to address the issues concerning private business aircraft operators.
"The Draft Aviation Policy ignored us. It did not address any of our issues. We have made a lot of representation to the Ministry of Civil Aviation. I think in the final policy they will mention something. Let's see," he said.

Nadkarni said India should focus on developing regional connectivity so that the sector grows.