Now that BJP has come to power and the new Modi Cabinet is going to be sworn in on Monday (26 May), here’s what should be priorities for the new aviation ministry.
Inter-Ministerial Group on Aviation (IMGA): Establish an IMGA to facilitate faster decision making across government ministries like home, defense, finance, tourism, environment etc. There are already talks of merging all transportation ministries and tourism into one over-arching Ministry of Transport for efficient coordination.
ATF Taxes: Work closely with the top 6 States to reduce Sales Tax on ATF to 0 per cent or 4 per cent – the eastern states have already shown the path.
Maintenance Repair And Overhaul (MRO): Declare 10 year tax holiday on MRO. Government of India earns nearly nothing from MRO – so the tax loss is notional. The creation of jobs, saving of foreign exchange and increase in direct tax collections (from MROs and employees) would be several multiples of the notional loss. This is the lowest hanging fruit for the new government.
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