National Civil Aviation Policy 2016 and prices of air tickets

Q.  How the National Civil Aviation Policy 2016 aims to bring down prices of air tickets?

1) Reduced Service tax on tickets (on 10% of the taxable value) for 1 year initially
2) State government will provide police and fire services free of cost
3) Power, water and   other utilities at concessional rates
- Published on 16 Jun 16

a. 1, 3
b. 1, 3
c. 2, 3
d. All of the above

ANSWER: All of the above
 
  • The Policy lays focus on regional connectivity with an aim of providing affordable aviation services in Tier-II and Tier-III cities.
  • It will help bring down the prices of air tickets by giving exemptions including service tax, customs duty, landing and parking fee and VAT.
  • Other measures are – There will be no airport charges; Viability Gap Funding (VGF)to airline operators; Reduced Excise duty at 2% on ATF picked at RCS (Regional Connectivity Scheme) airports, etc.

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