New Delhi, Oct 20 (IANS): An association of charter flight operators Thursday said they will submit a memorandum to the government to seek cuts in taxes and levies which are deterring the sector's growth, which currently stands at 12.5 percent year-on-year.

"Government should look into the high custom duty and value-added tax (VAT) structure on purchase of aircraft, spares and fuel, which is deterring the growth of the sector," Rohit Kapur, president of the newly formed Business Aircraft Operators' Association (BAOA), told IANS.

Kapur, who is also the managing director of Arrow Aviation, added: "We have enormous potential to grow the charter flight business in India, only if some constructive steps are taken. The charter operations not only saves time, it increases efficiency of companies across the sectors."

He pointed out the need in reduction of 25 percent custom duty on purchase of aircraft.

"We need to build capacity but with such a high custom duty on aircraft acquisition, it is difficult to increase the numbers from 552 aircraft and choppers which are currently in service," he said.

Kapur added that the business aviation sector has a potential to provide employment in various activities like ground handling, maintenance repair and overhaul work.

"Like BPO (business process outsourcing) and IT sector, we have a cost advantage in cheap labour. If we get proper support than the sector can provide a lot of employment potential," he said.

Kapur added that in the US, business aviation provides employment to over 1.2 million people with revenues of $150 million per year.