Aviation ministry seeks sops from FinMin to boost distressed sector

Asks for tax cut on jet fuel, credit on GST, and green light to airlines for ECBs

The aviation sector, currently weighed down by distress, could soon get a breather, with the government planning reforms that might provide tax relief and allow airlines to tap foreign lenders.

The civil aviation ministry is in discussion with the finance ministry to lower tax rates on jet fuel or ATF, increase advantages under the goods and services tax (GST), and allow airlines to raise working capital loans abroad.

Civil Aviation Minister Suresh Prabhu and Minister of State for Civil Aviation Jayant Sinha, in a meeting with Finance Minister Arun Jaitley earlier this week, said these steps could help the industry.