Govt eyes extending tax holiday for aircraft leasing firms in Gujarat’s Gift City

Core Viewpoint - India is planning to extend the tax holiday for aircraft leasing firms in GIFT City from 10 years to 15 years to enhance its competitiveness in the global aircraft leasing market, which is currently dominated by Ireland [1][4]. Group 1: Tax Holiday Extension - The current tax waiver for aircraft leasing companies in GIFT City is 10 years, and extending it by five years aims to attract more lessors who profit significantly in the later years of the leasing cycle [2][4]. - The profit margins for aircraft leasing firms are around 1% in the early years but can surge to as high as 40% in the later years [3]. Group 2: Market Context - The global aircraft leasing market is valued at approximately $187 billion, with Ireland managing about half of the world's leased aircraft [4]. - India's commercial aircraft leasing market is estimated to be around $4.7 billion in 2023, growing at an annual rate of 11.8% [5]. Group 3: GIFT City Developments - GIFT City has successfully attracted global financial institutions through various tax incentives, positioning itself as a competitor to financial hubs like Singapore and Hong Kong [6]. - The proposed tax holiday extension would benefit local carriers such as IndiGo and Air India, as well as global subsidiaries like Rolls-Royce and Willis Lease Finance [7][8].