NEW DELHI: Unveiling the much-awaited draft civil aviation policy, the government proposed tax incentives for airlines, maintenance and repair works of aircrafts besides mooting 2 percent levy on all air tickets to fund regional connectivity scheme.
In a significant move, the civil aviation ministry has pitched for over 50 percent foreign direct investment (FDI) in domestic carriers in case the open skies policy is implemented.
Under open skies policy, overseas airlines can operate unlimited number of flights into and out of India.
At present FDI limit is 49 percent.
Presenting the revised draft national aviation policy here, civil aviation secretary R N Choubey said the ministry has proposed 2 percent levy on all domestic and international tickets for regional connectivity scheme.
"The government expects about Rs 1,500 crore annually from charging 2 percent levy " Choubey added.
Govt unveils draft civil aviation policy; proposes slew of tax incentives for airlines, maintenance works.
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