Aviation Sector in Pakistan Budget 2015-16

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Abbas Ali
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Aviation Sector in Pakistan Budget 2015-16

Post by Abbas Ali »

The contribution of aviation sector in Pakistan is a small fraction of one percent of Gross Domestic Product (GDP) as compared to share of the sector at 3.4% in the global GDP. Our government is confident that the following package shall cause a spurt in the growth of this sector. In this regard a few proposals are presented below :-

a. Exemption from Customs Duty and Sales Tax:

It is proposed that customs duty and sales tax in respect of following items used in aviation sector may be exempted.

i. Aircraft – whether imported or leased.

ii. Maintenance kits for trainer aircraft.

iii. Spare parts for use of aircraft, trainer aircraft and simulator.

iv. One time import of machinery, equipment and tools imported by recognised maintenance, repair and overhaul company.

v. Operational tools, machinery, equipment and furniture and fixtures on one time basis for authorised greenfield airports.

vi. Aviation simulators by recognised airline company.

b. Remote Area Routes:

Infrastructure connectivity with major economic hubs is key to economic development of a region. Some areas of the country having great economic potential are however located far from existing major economic routes.

In order to open up remote areas through aviation links it is proposed that air routes in Gilgit-Baltistan, Makran Coastal belt, Azad Jammu and Kashmir, Chitral and Federally Administered Tribal Areas (FATA) be exempted from payment of Federal Excise Duty (FED) and withholding tax.

Source: tribune.com.pk
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Abbas Ali
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Re: Aviation Sector in Pakistan Budget 2015-16

Post by Abbas Ali »

A spokesman for PIA, Aamir Memon, said that the proposed exemptions in FED on remote areas' routes would reduce fares by twenty percent.

Source: brecorder.com (June 6, 2015, print edition)

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