A slew of tax incentives for airlines and maintenance works are some of the proposals in the draft civil aviation policy, unveiled by the Government today. The policy proposes to put service tax at zero to promote Maintenance, Repair and Overhaul facility. The Draft Civil Aviation Policy seeks to revive underserved airstrips and build no-frills airports.<br/><br/>It proposes two per cent levy on all domestic and overseas tickets for funding regional connectivity scheme.The Government also proposed hiking FDI in domestic airlines to over 50 per cent in open skies policy. The policy proposes separate regulation for helicopters from April 1 2016. The policy will be open to comments from the industry and various stakeholders before the final policy will be shaped.

A slew of tax incentives for airlines and maintenance works are some of the proposals in the draft civil aviation policy, unveiled by the Government today.<br/><br/>It proposes two per cent levy on all domestic and overseas tickets for funding regional connectivity scheme. The Government also proposed hiking FDI in domestic airlines to over 50 per cent in open skies policy.