Welcome tail winds for an aviation sector facing turbulence

The domestic aviation sector, down with tepid growth, will get a shot in the arm from the Centre’s decision to reduce the corporate tax rate, experts said.

The lower corporate tax is expected to boost overall consumption and drive growth in a slowing economy, which in turn could translate into higher corporate spending on travel.

“The slashing of corporate tax rates means that there will be a higher level of profit retention for corporate India, which will take away some of their cost pressures,” said Sharat Dhall, chief operating officer, business-to-consumer, Yatra Online.