NEW DELHI: India is preparing a $1.6 billion rescue package for the aviation sector, which has suffered immensely following the coronavirus outbreak, which has forced countries to close borders and brought air travel to a near-halt, said a report.
The Finance Ministry of India is considering a proposal that includes temporary suspension of most taxes levied on the sector, including a deferment of aviation fuel tax, said a Reuters report citing sources who have direct knowledge of the matter.
“Taxes could be deferred till the coronavirus spread is contained and the aviation sector can come back to its feet,” one of the sources said, adding that the companies could be permitted to pay the taxes interest-free in the next tax cycle.
Governments the world over are scrambling to rescue airlines that have been forced to park planes and cut jobs as the virus puts the brakes on travel., the report said.
