The Directorate General of Civil Aviation recently eased regulation of the Indian aviation market. Foreign direct investment rules have been reformed to allow foreign airlines to acquire up to
49 percent of an Indian airline. Also helpful is the expansion of the e-Tourist Visa program, which dramatically streamlines and
simplifies a visa acquisition process that previously deterred tourism. Under consideration are taxation reforms, including rationalization of aviation fuel taxes, which can currently reach 35 percent; reduction of taxes on maintenance, repair, and overhaul, which encourage Indian airlines to outsource MRO to neighboring regions; and reduction of duties on engine spare parts.
The Directorate General of Civil Aviation recently eased regulation of the Indian aviation market. Foreign direct investment rules have been reformed to allow foreign airlines to acquire up to49 percent of an Indian airline. Also helpful is the expansion of the e-Tourist Visa program, which dramatically streamlines andsimplifies a visa acquisition process that previously deterred tourism. Under consideration are taxation reforms, including rationalization of aviation fuel taxes, which can currently reach 35 percent; reduction of taxes on maintenance, repair, and overhaul, which encourage Indian airlines to outsource MRO to neighboring regions; and reduction of duties on engine spare parts.
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