Aviation: Sops for training schools

In a move that is expected to ease the burden on domestic commercial aircraft operators, Finance Minister P Chidambaram today announced exemptions on aircraft imported for non-scheduled operations and for training purposes.

Replying to the discussion on the Finance Bill, Chidambaram said aircraft imported for the majority of the non-scheduled operators and for training would be exempted from Customs duty, countervailing duty (CVD) and additional Customs duty.

"The Ministry of Civil Aviation made a strong representation in favour of exemption of aircraft imported for training purposes by flying clubs and institutes, for non-scheduled point-to-point and for non-scheduled chartered operations under conditions of registration to be specified and recommended by that ministry," said Chidambaram in his speech, adding that since "civil aviation is a nascent and growing industry", the recommendations had been accepted.

Till now only those aircraft imported by the government and scheduled operators were exempted from the levies, totalling 23 per cent. However, he did not say anything about aircraft imported for private use.