Union cabinet approves India-Maldives airlines taxation agreement

The Union cabinet has approved the signing of an agreement between India and the Maldives, under which airlines of the two countries will be provided relief from double taxation for operating flights between the two countries. The pact will exempt Indian airlines operating in the Maldives from Maldivian tax and vice versa. Further, profits from the operation of aircraft on international routes will be taxed only in one country, with the right of taxation being conferred upon the country to which the airline belongs.