Budget 2021: Aviation Industry Can Get Tax Benefits


As a relaxation for the aviation sector, which is hardest hit by the Covid-19 pandemic, the Govt. has hinted to give tax benefits in several taxes in the industry in the budget 2021.

Usha Padhee, Joint Secretary, Ministry of Civil Aviation, while addressing a webinar on “Connecting the Dots-Recovery of aviation, tourism and hospitality” on Friday, pointed at the need for the sector to be ready for any challenges and said that policy rejig will also help it in the long run, if it is hit by a similar crisis in the future.

She said that “We are working on a long-term plan to help the sector by rationalizing various taxes. We are looking forward to make the ecosystem smarter and more efficient to make the aviation sector sustainable,”

The webinar was organised by Women in Aviation International – India Chapter.

Success Of UDAN

She also highlighted the success of the Udan scheme and added: “Though the pandemic has adversely impacted the aviation and allied sectors, yet we have managed to take steps towards recovery. We are systematically opening the air space for operations and the air bubbles have helped aviation sector to get 60 per cent capacity of domestic sector back.”

She further said that great solutions are emerging from the crisis while also studying how the industry has rapidly adapted to technology and digitally transformed.

“The crisis has led to digital transformation for the aviation sector. Now we have 100 per cent web check-ins and various technology driven solutions have been adopted to offer touchless experience to passengers,” she quipped.

Aviation Industry After the Pandemic

Before the Covid pandemic, forecasts indicated that in 2036 the aviation industry will provide 98 million jobs and generate $5.7 trillion in GDP. But after the pandemic, the situation is exactly gone the opposite throwing the industry into a state of flux.


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Rohan Kumar
Rohan Kumar
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