Government Implements 5% Tax on Aircraft and Engine Parts

16 Jul 2024 CW Team

The Indian government has introduced a uniform tax rate of 5% on all aircraft and aircraft engine parts, aiming to simplify taxation in the aviation sector. This move replaces the previous complex tax structure that varied across different components of the aviation industry.

Effective immediately, the new tax rate applies to both domestic manufacturers and importers of aircraft parts. This uniform taxation system is expected to streamline compliance procedures and reduce administrative burdens for businesses operating in the aviation sector.

The decision to implement a standardised tax rate comes as part of broader efforts to boost local manufacturing and attract investments in the aerospace industry. By providing clarity and consistency in tax policies, the government aims to enhance India's competitiveness as a global hub for aviation manufacturing and maintenance.

Stakeholders in the aviation industry have welcomed the move, anticipating improved ease of doing business and reduced transaction costs. The uniform tax regime is poised to stimulate domestic production capabilities, encourage technological advancements, and support the growth of ancillary industries associated with aerospace manufacturing.

This initiative aligns with the government's 'Make in India' initiative, aiming to promote indigenous production of aircraft components and reduce dependency on imports. It also seeks to create a favourable environment for innovation and job creation in the aviation sector, contributing to the country's economic growth and development.

Infrastructure Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..