The express industry is very encouraged by the government allowing direct import of aviation turbine fuel (ATF) for Indian carriers which will bring down the cost of doing business. It is also encouraging to see that the government is actively seeking to reduce regulatory transaction costs by simplifying the Service Tax regime and seeking to harmonize Central Excise and Service Tax.
However, an increase in Excise and Services Tax rates amid economic slowdown and deceleration in industrial sector growth is a matter for concern. One would also have hoped that this budget would have given airports and civil aviation core infrastructure status. Logistics industry is looking forward to the implementation of the GST, and in that context the announcement that the IT platform for GST would become operational by August this year is an encouraging sign.
