To facilitate the private airport operators raise funds, industry body FICCI has recommended that they should be allowed to issue tax free infrastructure bonds from the public. Further, investments in these bonds should be notified for the purpose of claiming deduction under section 80CCF of the Income Tax Act.
Infrastructure development is a pre requisite for the growth and development of any country. Infrastructure development is available in two ways i.e. to build altogether new infrastructure or to convert the existing structure by upgrading it and also enhancing the existing capacity. Both activities entail huge investment and human efforts.
"It is recommended that a suitable amendment may be made in the Act to clarify that the up-gradation / extension of the existing infrastructure facility would also be eligible for the benefit of Section 80IA of the Act,'' industry body said.
''Airlines viability is impacted adversely due to ATF prices being high as compared to elsewhere in the region. It is recommended that taxes/statutory levies on ATF may be considered for reduction,'' FICCI said.
In the airport sector of infrastructure, there are many ancillary/support services required which are essential for smooth functioning of airports. These include fuel facility, parking, cargo facilities etc. No airport can function in the absence of these facilities as these are life line services for airport.
In the absence of clear definition of 'Airport' under the present section 80-IA of the Act, it leaves an ambiguity whether these services enjoy benefit of Sec 80-IA of the Act or not. FICCI recommends that benefit under section 80-IA of the Act be extended to these services as well.