GIFT to Gujarat: Can the state become the next Ireland of aircraft leasing?

Companies already enjoy a 10-year tax holiday on income and profit in GIFT. Sitharaman's proposal to not tax capital gains incomes could further sweeten the deal for those wanting to exit Ireland

In what could be a big boost to aircraft leasing operations in India, finance minister Nirmala Sitharaman announced a tax holiday for companies looking to enter the aircraft leasing business. There are two things that become apparent while reading between the lines. Firstly, the aircraft leasing company would have to be situated at Gujarat International Finance Tec City (GIFT) in the state. Secondly, the tax holiday would be available only on capital gains income of the leasing company.

Aircraft leasing has been the preserve of a handful of nations, pre-dominantly Ireland. At 12.5 per cent, the country has some of