Public sector Pawan Hans Helicopters (PHHL) has asked the government for waiver of customs duty on import of aircraft.
The non-scheduled air service provider has argued that lower aircraft purchase price would help it offer air transport at an affordable cost in far-flung areas like the North-East and Jammu and Kashmir (J&K).
The helicopter company is of the view that since the government wants better connectivity in the North-East and other inaccessible areas like Lakshadweep by subsidising air travel, it should not levy import duty.
Finance minister Pranab Mukherjee, in his last Budget, had announced withdrawal of the customs duty exemption on helicopters imported for non-scheduled air operations. ?PHHL has presented its case for a custom duty exemption. We would approach the department of revenue for the same,? a civil aviation ministry official said. Pawan Hans operates a fleet of 40 helicopters, including Dauphin and Bell helicopters, which also provides offshore services to ONGC, besides chartered services to places of pilgrimage. It recently started seaplane services to tap business opportunities. ?The helicopter industry is already reeling under losses. Fuel price has been steadily going up. The manpower cost too has risen. The industry should not be burdened with taxes as it would hamper growth,? PHHL chairman and managing director RK Tyagi said. Following the government?s move to withdraw custom duty exemption, import of helicopters attracts a duty of 2.5% and education cess of 3%. Helicopter companies are also miffed over the government?s decision to levy service tax on air travel as this has adversely affected heli-tourism.
?While input costs and tax burden have increased, the tariff has fallen. For example, the return ticket price for a trip to Vaishno Devi shrine from Katra has gone down to Rs 2,500 from Rs 4,000 earlier,? said a PHHL official.