Budget 2022: No Support for Aviation Sector

Civil Aviation

New Delhi: The aviation industry which was expecting some support from the Budget 2022-23 in terms of reduction in excise duty and concessional finance, were left disappointed.

Struggling to overcome several disruptions caused due to Covid-19, their path to recovery remains distant as of now. A strong support from the government at this stage would have firmly supported the sector’s early signs of recovery being witnessed for past two-three months.

IndiGo’s CEO Ronojoy Dutta, after the Budget was quoted in a media statement, “We were expecting tax concession to Aviation industry in the forms of cut in ATF excise duty and allocation of concessional finance to airlines to help us come out of the pandemic.”

In her budget speech, Finance Minister mentioned that airports would power the economic growth as a part of the PM Gati Shakti programme. But the details on how this would be achieved, or the timelines were missing. Similarly, there was no mention about aviation industry’s key demands for cut in airport charges, customs duty and relook at IGST charged on parts sent abroad for repair and come back.

“India’s Union Budget 2022 had nothing for aviation or tourism. This was highly disappointing & insensitive given the near-broken state of these sectors, although somewhat expected. Industry will be pinning its hopes – as in the past – on post-Budget redressal,” Aviation consultancy firm Centre for Asia Pacific Aviation (CAPA) said in a statement.

Commenting on the Budget, Ashmita Sethi, President & Country Head, Pratt & Whitney said, “We congratulate the government on a strong, inclusive and growth focused budget in 2022. We believe that the far-sighted measures for energy transition, climate action, and advancing defence R&D with the private sector will be crucial towards securing India’s bright future. We would have liked to see additional aviation specific reforms this year, as the sector battles the significant impact of the pandemic.”

The aviation industry is vital for the growth of the Indian economy and with government’s failure to address their concerns, clearly indicates that it was a missed opportunity.