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Title: Consideration of the Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Bill, 2002 (Bill Amended and Passed).
(श्री सैयद शाहनवाज़ हुसैन) : महोदय, मैं प्रस्ताव करता हूं:
“कि शिकागो में ७ दिसम्बर, १९४४ को हस्ताक्षरों के लिए बुलाए गए अंतरराष्ट्रीय सविल विमानन से सम्बन्धित अभिसमय के अनुसरण में, अन्य देशों के साथ भारत द्वारा किए गए करारों को कार्यान्वित करने वाले विधेयक पर विचार किया जाए।”
MR. CHAIRMAN : Can you make a statement? If you want, you can make a statement.
SHRI SYED SHAHNAWAZ HUSSAIN: Sir, I will make the statement after the discussion.
MR. CHAIRMAN : Motion moved:
“That the Bill to implement Agreements entered into by India with other countries in pursuance of the Convention on International Civil Aviation opened for signatures at Chicago on the 7th December, 1944, be taken into consideration.”
MR. CHAIRMAN: Shri Adhir Chowdhary to speak now.
SHRI ADHIR CHOWDHARY (BERHAMPORE, WEST BENGAL): Mr. Chairman, Sir, the hon. Minister has introduced the Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Bill, 2000. Actually the Bill was preceded by long legal wrangling between the Ministry of Law and the Ministry of Civil Aviation. Actually the Ministry of Law does not want the aviation turbine fuel to be declared as deemed export. On the other hand the civil aviation administration has always been arguing that the ATF be declared as deemed export so that the flag carrier could be exempted from paying sales tax.
Sir, this Bill seeks to enact a legislation, under article 253 read with Entry 14 of List I of Schedule VII to the Constitution, to exempt from all duties and taxes the fuels and lubricants uplifted by an aircraft registered in another State, operating international services to, from and through India.
Sir, as we know that under the international obligations, the International Civil Aviation Organisation has also adopted a resolution in December, 1993 so that an aircraft shall be exempt from all customs and other duties. Such duties and taxes shall include those levied by any taxing authority within a State, whether national or local.
My first reaction is that the first casualty of this enactment will be the State Governments. For the last 40 years, the State Governments had been enjoying the reimbursement facilities in so far as sales tax was concerned. The Central Government used to pay the sales tax which was supposed to be exempted for the foreign aircraft. But now, those facilities have been done away with by enacting this legislation. Since 1994, the exemptions were reimbursed to the States from Oil Pool Fund also.
What is most intriguing to note and which can be construed as an effrontary gesture of this Department is that those State Governments, who have been deprived of having the sales tax on ATF sold to those aircraft, have never been consulted before enacting the law. However, this law concerns those States and has a direct bearing so far as fiscal health of the States is concerned. However, no State Government has ever been taken into confidence before enacting this legislation. We know that all the State Governments in India have been suffering from financial crunch and this enactment will deliver a further fatal blow in so far as the fiscal health of the State Governments is concerned. So, I have a serious objection particularly in respect of this point and I would say that the Ministry should have taken into confidence all the concerned State Governments before the legislative document was prepared.
Sir, the title of the Bill is Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Bill, 2000, but the contents of the Bill deal with only the foreign aircraft. May I ask the hon. Minister why the Government does not provide the same facility of exemption to the domestic carriers who are used to go abroad?
However, they have to pay sales tax on ATF sold to them. I think, this is in total contrast to the concept of allowing a level-playing field to all concerned as pursued by this Government. All the domestic carriers like the Jet Airlines, the Sahara Airlines and even the Indian Airlines have tried to persuade this Government to allow this exemption from sales tax because sales tax and other levies consequently add up to raising the price of fuel. The high level of domestic duties is not at par with the revenue earning potential of various sectors serviced by the Domestic airlines. Therefore, the plea of the private as well as the Government carriers, that have to fly abroad, for exemption from sales tax needs to be considered seriously.
Sir, we all know that air travel involves over-flying, stoppage in other countries for upliftment of fuel technical assistance, for maintenance and also for picking up passengers from those countries. This global phenomenon once spurred the international community to devise a template of freedom and in the later stages, in the year 1944, the Chicago Agreement was adopted. We know that at the seminal stage, the Chicago Agreement envisaged five freedoms. The third, fourth and the fifth freedoms, as was envisaged in the Chicago Agreement, have become a part and parcel of a bilateral agreement through which carrying of passengers between countries was ensured as it had a significant economic dimension.
Sir, the first and second freedoms as were declared through the Chicago Agreement concerned the right of over-flying and right to land for technical assistance. These were envisaged as fundamental rights for air transportation. It had become a part and parcel of a multi-lateral agreement. Therefore, it is of common knowledge that the privilege of over-flying across national territories
without landing and the privilege to land for non-traffic purposes are internationally recognised. Here, I would like to raise a pertinent issue. Why has this Government so far not been able to sort out the problem insofar as flying between India and Pakistan is concerned? It is clearly a semblance of violation of international law. We know that after the 11th September, the entire world stood aghast by the hijacking that wrought havoc and also left a traumatic effect not only on America but also on the people of the world. On that day the passenger planes were converted into fixed wing missiles by the hijackers by sheer innovation. … (Interruptions) As far as hijacking is concerned, it is not a new phenomenon. We know that soon after the World War-II, the East European refugees had resorted to hijacking for fleeing the Communist countries. Therefore, it is not a new phenomenon for us. Therefore, to check this menace the international community had adopted a resolution in the Convention of Tokyo, Montreal, Hague.
MR. CHAIRMAN : Shri Harin Pathak, you all look very happy. Why do you not make everybody in the House happy too?
SHRI VINOD KHANNA (GURDASPUR): Sir, the joy is because the hon. Member of Parliament is talking about some other issues. We are talking about this Bill and we need to pass this Bill. We do not need to talk about hijacking and about what is happening in Pakistan.
MR. CHAIRMAN: No, no. Wherever the word aircraft is there, problems of aircraft will be debated here. That is the convention here.
… (Interruptions)
MR. CHAIRMAN: I am not suggesting anything to anybody. I am just saying that that is the practice being followed here.
SHRI VINOD KHANNA : Sir, the hon. Member is wasting the time of the House.
MR. CHAIRMAN: The word aircraft is there. It is something like answering a question of economics where you find just one word about economics.
SHRI ANIL BASU (ARAMBAGH): Sir, these are also very relevant issues relating to the Ministry.
MR. CHAIRMAN: Let the hon. Member speak. We cannot teach a Member as to how he should speak. All are hon. Members.