Published on : Friday, November 24, 2017
Gulf Airlines are targeted by new US Senate Tax Bill after a blow from US laptop ban and travel restrictions. The laptop ban and travel restrictions are targeted to Middle East and African nations, which triggered down the aviation industry there.
Under the text of the Senate’s tax bill currently before the U.S. Congress, rules that have for decades exempted the foreign airlines from corporate taxes will be repealed in a weirdly targeted way.
If the carriers ‘ country are to qualify for the exemption, a tax treaty with the United States must be in place and U.S. airlines with at least $1 billion in annual revenue must have at least two weekly arrivals and departures there.
It is a resourceful way of singling out Emirates, Qatar Airways Ltd and Etihad Airways PJSC without being seen to do so.
There is large United States airlines have hardly made a secret out of the fact they no longer fly to the Gulf, something they blame squarely on unfair competition in the region.
As a result, the repeal will only affect the countries that America’s big three want to exclude, leaving friendlier rivals in Europe and Asia intact.
This move would upend decades of precedent and encourage retaliation by foreign governments.