New Delhi, Sept. 2 -- A high-level committee, chaired by Civil Aviation Minister K Rammohan Naidu, on Wednesday discussed measures to boost aircraft leasing and financing activities in the country, including issues related to taxation and availability of finance.
The first meeting of the panel on aircraft leasing and financing was attended by senior officials from the civil aviation and finance ministries, Department of Commerce, Directorate General of Civil Aviation (DGCA), Reserve Bank of India (RBI), IFSCA and representatives of industry associations.
"The committee also took up a range of issues to create an enabling environment for aircraft leasing and financing, including taxation, regulatory frameworks, availability of finance and ease of doing business. 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."
At the meeting, Naidu suggested the need for exploring mechanisms for greater allocation of bank credit to the aircraft sector and identifying joint ventures for technical and skill development in the aircraft leasing segment.
The government's efforts to encourage aircraft leasing and boost lessor confidence are yielding results, with 422 assets, including 250 aircraft and 87 engines, having been leased through the International Financial Services Centre (IFSC) and 474 leasing agreements having been signed, the release said. International Financial Services Centres Authority (IFSCA) is the regulator for IFSC.
The minister said the availability of aircraft remains a key bottleneck and emphasised the need for a coordinated and time-bound approach towards addressing the identified regulatory, financing and taxation-related issues.
Published by HT Digital Content Services with permission from Millennium Post.