The budget for 2024-25 financial year proposed to withdraw VAT on aircraft engines and spare parts of propellers at the import stage to support the growth of local aviation companies.
Finance minister Abul Hassan Mahmood Ali announced while placing the budget for FY 2024-25 in the Jatiya Sangsad in Dhaka on Thursday. 聽
In the current reality, he said that the domestic airlines were gradually lagging behind in the competition with the foreign airlines due to various reasons. 聽
鈥業n order to support the growth of local aviation companies and to tap the future potential of the industry, I propose to withdraw the VAT on aircraft engines and spare parts of propellers at the import stage,鈥� he said.
Over the past 15 years, the finance minister said, both passenger and cargo air transport with the rest of the world has increased manifold with the substantial growth of the country鈥檚 economy.
In tandem, he said, domestic air travel has also increased with the change in travel options by the countrymen. 聽
鈥業n response, we have taken up several projects to modernise air transport and related services to meet global standards,鈥� said the finance minister. 聽
A total of Tk 5,695 crore has been allocated for the civil aviation and tourism ministry in the proposed budget for FY2024-25. 聽
