No import duty on flying club aircraft

New Delhi: Finance minister P Chidambaram on Thursday moderated his Budget proposal to levy 3% import duty, additional custom duty as well as countervailing duty on import of aircraft, including helicopter, by removing flying schools and smaller regional operators from its purview. The provisions would, however, continue to apply to non-scheduled operators (all other operators other than regional), corporate jets and for private use.
Replying on the debate on the Finance Bill Chidambaram said, “Ministry of civil aviation has made a strong representation in favour of exemption for aircraft imported for training purposes by flying clubs and institutes and for non-scheduled point-to-point and non-scheduled charter operators under conditions of registration to be specified and recommended by that ministry. Since civil aviation is a nascent and growing industry, it has been decided to accept this request and exempt these categories also from the duties.”
The three duties (import, additional custom duty and countervailing) put together added up to almost 26% of the purchase value of an aircraft. The proposal would help the non-scheduled airline or the flying club save $6.6 to $ 10.4 million on purchase of each aircraft.
03/05/07 Financial Express