New Delhi, August 27: Under the Regional Connectivity Scheme (RCS) the jet fuel purchased from airports will be having excise duty of 2 per cent as announced by the government on Saturday. The airlines as well as cargo operators, both will benefit due to this concessional excise duty rate.
As a part of the new civil aviation policy, the Regional Connectivity Scheme was announced to fly to unserved and underserved areas. For this purpose, several different financial incentives would be extended to the airlines. The notification of the excise duty levied by Central Board of Excise and Customs (CBEC) read,’ A basic excise duty at concessional rate of 2 per cent would be levied on "Aviation Turbine Fuel (ATF) drawn by operators or cargo operators from RCS airports for a period of three years."
In the draft issued earlier, the Airport Authority of India said that The RCS route would have to include un-served airports i.e. airports where there is no scheduled commercial flight or under-served airports i.e. airports which have 7 or less scheduled commercial flights per week. The RCS routes would cover a length 200 to 800 km. But these criteria would not apply to hilly areas, islands, North-east region and for helicopter operations.