Aviation sector to get a boost from government’s tax rate cut
New Delhi: The domestic aviation sector, struggling with tepid growth, will get a shot in the arm from the finance minister’s announcement to reduce corporate tax, aviation sector experts told Mint.
The government’s decision is expected to boost overall consumption, drive growth in a slowing economy, which in turn could translate into higher corporate spending on travel.
Finance Minister Nirmala Sitharaman on Friday announced a cut corporate tax rate for domestic companies that do not avail of any tax incentive to 22%. Effective corporate tax rate after surcharge will be 25.17%. New manufacturing companies will have to pay an even lower corporate tax rate of 15%.
