Private airport operators demand tax benefits in the first Union Budget

Mumbai: Association of Private Airport Operators has demanded infrastructure status for airport support services and sought various tax benefits in the first Union Budget of the Narendra Modi government. The private airport lobby group has also supported the airlines' demand of including Aviation Turbine Fuel (ATF) in 'Declared Goods' category to bring about a uniform tax across the country.

In a memorandum to Finance Minister Arun Jaitley, APAO has suggested that private airport operators should be allowed to issue tax free bonds for creation of aviation infrastructure as was allowed in Railways, power, housing and highways development. It also demanded that the hike in withholding tax from 10 to 25 per cent be withdrawn. It suggested that Central Board of Excise and Customs should amend the law on allowance in bad debts in the infrastructure sector to provide relief to the service providers.