Question : Stimulus Package for Aviation Industry

(a) whether the Government proposes to announce/offer a stimulus package for aviation industry for overcoming the crisis due to Covid-19 and if so, the details thereof;

(b) whether the Government proposes to reduce the taxation on Aviation Turbine Fuel and if so, the details thereof;

(c) whether the Government proposes to include taxation of Aviation Turbine Fuel in GST and if so, the details thereof;

(d) whether airfare charged by the airlines is not affordable to the common people; and

(e) if so, the steps taken/proposed by the Government to make the airfare including the airfare being charged for Gulf countries affordable?

The Minister of CIVIL AVIATION
(Shri Jyotiraditya M. Scindia)

(a) to (e) : A Statement is laid on the Table of the House.

STATEMENT IN RESPECT OF LOK SABHA STARRED QUESTION NO. 252 REGARDING "STIMULUS PACKAGE FOR AVIATION INDUSTRY" TO BE ANSWERED ON 05.08.2021.; (a) The Government has taken various steps aimed to help civil aviation sector overcome the crisis due to COVID-19, which include: (i) Route rationalization in the Indian airspace in coordination with Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption. (ii) Goods and Services Tax (GST) rate reduced to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services. (iii) A calibrated increase of the domestic aviation.; (iv) As on date, exclusive air-links or Air-Bubbles have been established with 28 countries with the objective of restarting international passenger services while regular international flights remain suspended due to COVID-19.; (v) Stipulating fare-band for the airlines;

(vi) Benefits under Emergency Credit Line Guarantee Scheme (ECLGS) 3.0 have been extended to civil aviation sector. (b) and (c): The decision to include Aviation Turbine Fuel (ATF) under GST rests with the GST Council. (d) and (e): Ministry of Civil Aviation launched Regional Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik) on 21-10-2016 to stimulate regional air connectivity and making air travel affordable to the masses. The airfares on Gulf-Kerala routes under the air bubble are generally comparable with the fares charged by the airlines in pre-COVID times (Summer 2019 schedule).