+
Government Implements 5% Tax on Aircraft and Engine Parts
AVIATION & AIRPORTS

Government Implements 5% Tax on Aircraft and Engine Parts

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.

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.

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?