2 hrs ago
India Explores Tax and Finance Reforms to Boost Aircraft Leasing
India wants to make it easier for airlines and companies to lease and finance airplanes.
A government committee met to discuss how to do this.
The group looked at taxes, rules and access to money.
It also considered allowing aircraft loans in rupees.
Officials discussed clarifying an anti-tax-avoidance rule and possibly changing a tax agreement with Ireland.
They want banks to provide more credit to the aircraft sector.
The committee also discussed partnerships to build technical skills.
So far, 250 aircraft and 87 engines have been leased through India’s financial centre.
The aviation minister said finding enough aircraft is still a major problem.
A government committee chaired by Civil Aviation Minister K Rammohan Naidu reviewed ways to strengthen aircraft leasing and financing in India.
The panel considered taxation, regulations, access to finance and ease-of-doing-business measures.
Proposals included rupee-denominated aircraft financing, greater clarity on GAAR and possible changes to India’s tax agreement with Ireland.
The committee discussed increasing bank credit for aircraft and creating joint ventures for technical and skills development.
Through the IFSC, 422 leasing assets—including 250 aircraft and 87 engines—have been routed under 474 leasing agreements.
- Who
- A government committee chaired by Civil Aviation Minister K Rammohan Naidu, with officials from aviation, finance and other agencies, examined the issue.
- What
- The committee explored taxation, regulatory, financing and business measures to expand aircraft leasing and financing in India.
- Where
- India, including its International Financial Services Centre (IFSC).
- When
- At the committee’s first meeting; the article does not specify the date.
- Why
- To strengthen India’s aircraft-leasing ecosystem, improve access to finance and address aircraft availability and related regulatory, tax and funding challenges.
Key facts
- Committee chair
- Civil Aviation Minister K Rammohan Naidu
- Assets leased through IFSC
- 422 assets
- Aircraft leased through IFSC
- 250 aircraft
- Engines leased through IFSC
- 87 engines
- Leasing agreements
- 474 agreements signed
- Measures discussed
- Rupee-denominated financing, GAAR clarity, bank credit, taxation and regulatory reforms
- Key bottleneck
- Aircraft availability remains a major challenge for India’s aviation sector
Quotes
Government official release
Official government release summarizing the committee’s discussions
“Discussions included the potential for rupee-denominated financing for aircraft, greater clarity on the applicability of GAAR (General Anti-Avoidance Rule), and the possibility of renegotiating the Double Taxation Avoidance Agreement framework with Ireland”
financialexpress.com
Sources
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