New Delhi: The government on Tuesday announced certain incentives as part of efforts to boost maintenance, repair and overhaul activities in the country's aviation and shipping sectors.
India is one of the fastest growing domestic aviation markets in the world.
"To promote domestic aviation and boat & ship MRO, I propose to extend the period for export of goods imported for repairs from six months to one year. In the same vein, I propose to extend the time-limit for re-import of goods for repairs under warranty from three to five years," Finance Minister Nirmala Sitharaman said, as she presented the Union Budget for 2024-25.
The government has been working on ways to boost the Maintenance, Repair and Overhaul (MRO) activities in the aviation sector as most of such works are currently done outside the country.
Earlier this month, the government implemented the 5 per cent uniform Integrated Goods and Services Tax (IGST) rate on all aircraft and aircraft engine parts.
Prior to this change, IGST rates on all aircraft and engine parts were in the range of 5 per cent to 28 per cent.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.
Published 23 July 2024, 10:23 IST