Tax breaks for choppers likely

Govt mulls over providing incentives for helicopter manufacturing

ISLAMABAD:

The government is likely to offer tax incentives to the private sector for the manufacturing of helicopters and their parts in a new proposed chopper policy.

The Civil Aviation Authority (CAA) has proposed that the government should eliminate taxes and duties on helicopter operations in the draft chopper policy.

It listed salient features of the policy while giving a presentation to the Cabinet Committee on Transport and Logistics in a recent meeting on Pakistan International Airlines’ (PIA) business plan and chopper policy.

It also briefed the committee on the Aviation Policy of 2015 and revised policy of 2019.

It was highlighted that there was no specific policy for helicopter operations in Pakistan. However, the Ministry of Aviation was in the process of introducing the first chopper policy in the country.

The policy is also aimed at encouraging the private sector to develop heliports and purchase/ lease helicopters. The main objective is to provide access to areas where fixed-wing aircraft could not fly.

It called for expanding helicopter operations for emergency purposes, ie search and rescue operations, tourism in different places including coastal and northern areas, adventure sports and regional integration.

In order to make the policy viable for chopper operators, it was suggested that the federal government may consider the elimination of taxes and duties.

It was recommended that the government may consider waiving duties/ levies on fuel for supporting the helicopter operations.

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The Cabinet Committee on Transport and Logistics held threadbare discussions, noting that details of customs duties/ taxes proposed for abolition were not given in the draft chopper policy.

The CAA was asked to include them in the policy. Moreover, it stressed the need for seeking views and opinion of the Federal Board of Revenue (FBR) before proceeding further.

The cabinet committee considered a summary submitted by the Aviation Division titled “Presentation to Cabinet Committee on Transport and Logistics on PIACL Business Plan and Chopper Policy” and directed the Aviation Division/ Pakistan Civil Aviation Authority to develop two separate segments of the policy, one dealing with the commercial sector and the other related to private/ personal users.

The cabinet body also gave directives for including details of customs duties and taxes required to be scrapped as an incentive for chopper operators in consultation with the FBR.

It called for presenting the revised chopper policy, with above details, to the committee in its next meeting.

Also, the Aviation Division/ PIA was directed to present the PIACL business plan in the next meeting.

 

Published in The Express Tribune, February 4^th, 2022.

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