Aviation stocks take off

Shares of three aviation companies rose by 1.66% to 4.53% at 15:09 IST on BSE on media reports that the civil aviation ministry is considering a steep reduction on the GST levied on aviation MRO industry.

Jet Airways (India) (up 4.53%), SpiceJet (up 3.69%) and InterGlobe Aviation (up 1.66%), edged higher.

The S&P BSE Sensex was up 120.78 points, or 0.35% at 34,426.21.

Media reports suggested that the government is trying to bring the Goods and Services Tax (GST) levied on aviation maintenance, repair and overhaul (MRO) industry down to a level of 5%. At present, the MRO industry is taxed at 18%, making aircraft servicing in India costlier than other countries. There is also a proposal under consideration to give a five-year tax exemption to newly-set up MRO facilities, reports added.

 

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