Ministry to assess tax exemption withdrawal impact

Stung by FM’s Budget announcement to withdraw tax exemption for companies leasing new aircraft, the Civil Aviation ministry is making a detailed assessment of the impact before taking the matter up with the Finance Ministry. Preliminary reports by national carriers to the ministry indicate that Indian Airlines will have to bear an additional expenditure of Rs 86 crore on account of leasing new aircraft after September 1. This amount includes the plan to lease of 11 new Airbus 319s for replacing the Alliance Air fleet. Air India’s assessment shows an additional expenditure of Rs 91 crore. —(PTI)