‘Udan’ will prove to be a high multiplier of the economy and is poised to take the number of operational airports in the country to 200 very soon. Thirty-three new airports will come up in the first year of the scheme.
This was stated by Union Minister of State for Civil Aviation Jayant Sinha at an interactive session at Bharat Chamber of Commerce, here on Monday.
Sinha said airlines expressed interest in bidding because of certain sops like reduction of aviation turbine fuel tax from 20-25 percent to 3 %, service tax abatement upto 90 percent and so on.
Further, the airlines will have exclusive rights over the bidding routes for three years, thus increasing their chances for making profits, he added.
All these measures have reduced the subsidy requirement for the participating airlines as well, said the Minister. He further said, this scheme will lead to the development of regional aviation industries.
He also stated that India will soon become the third biggest aviation market where domestic passenger volume is growing by 20 percent every year.
Speaking on GST, which will come to effect from July 1st this year, Sinha stated, it will be the centrepiece of a formal economy in the country. GST is a non-disruptive and revenue neutral, he asserted.
In this system, tax will be collected only at the buyer level and then credited down the supply chain, thereby removing multiple taxation, said the Minister.
On being asked, the Minister assured that GST will not lead to price rise.
He further stated, GST will also usher in a new chapter of political economy where GST Council has provided 2/3rd voting power to states and 1/3rd to Centre, thereby instantiating cooperative federalism.
It will also bring an end to red-tapism, said the Minister.
GST and demonetisation aims to end a parallel and non-formal economy which will not be tolerated anymore, he clearly stated.
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