Budget has little for aviation: Patel

New Delhi: Civil Aviation Minister Praful Patel on Thursday said the Union Budget has very little for the aviation industry and he will meet the Finance Minister soon on the demands of the industry.

Patel said this on a video-conferencing from Delhi on the world launch of BBC World's new programme Take Off on the Indian aviation industry.

"The Budget could have been better for the aviation industry. But, nevertheless, the finance minister had decided to give the aviation turbine fuel (ATF) tax benefit to turbo props," Patel said.

He said some of the demands of the industry included extending the lease withholding tax which expires on March 31, extending the sales tax benefit on air-turbine fuel to the low-cost carriers and tax incentive for the industry.

Patel said he would take up the issues with the Finance Minister.

In his Budget speech, Finance Minister P Chidambaram has proposed to reduce the Central Sales Tax Act applicable to ATF and to bring it under the Declared Goods for all the small aircraft, with a maximum take-off mass of less than 40,000 kg operated by scheduled carriers.

Patel said the priority of the UPA Government was to increase regional connectivity. The aim is to connect all the Tier II and III cities across the country and the government was doing all it can for achieving this, he said.