Concerns over Civil Aviation Policy: DACAAI
Domestic Cargo Agents Association of India ( DACAAI) shared few concerns with Ministry of Civil Aviation in regard to the civil aviation policy. The Draft Policy does not specifically deals with domestic air cargo which is growing at approx 20 per cent annually. The sector must get its due importance.
According to DACAAI members, separate domestic cargo terminals with exclusive infrastructure should be created at new airports. Exclusive and separate tax regime should be created for domestic air cargo, with a view to promote it. Excess of taxation of airlines in service tax, airport usage tax and tax on maintenance of aircrafts is passed on to domestic cargo as well whereas domestic cargo is already taxed on higher side. Special moratorium of service tax for promotion of the sector is the need of the hour in view of the big e-commerce market.
Government must promote domestic cargo for far flung areas of the country, where life saving drugs, vaccination and other medical aids is provided.