Civil aviation ministry to get Tk 2,455cr

The government today proposed an allocation of Tk 2,455 crore for the Ministry of Civil Aviation and Tourism in the national budget for the 2025-2026 fiscal year, saying it aimed to bolster domestic aviation and unlock the tourism sector's untapped potentials.

Additionally, a reduction in customs duty rates from 10to 3percent was proposed on all types of jet fuel and aviation spirits which is expected to reduce airfares and stimulate passenger growth, particularly for domestic carriers.

"VAT exemption has been granted for lease of aircraft used for passenger transport," Finance Adviser Salehuddin Ahmed said.

The step is likely to enhance the operational capacity of both national and private airlines, he added.

The revised allocation for the sector in the outgoing fiscal was Tk 4,878 crore against the original budgetary allocation of Tk 5,695 crore.