China boosts fiscal support for virus-hit aviation industry

China has rolled out a package of fiscal policies to aid the civil aviation industry in tiding over difficulties amid the novel coronavirus (COVID-19) epidemic, the country's civil aviation regulator said on March 4.

Preferential policies including tax relief and subsidies will be adopted to reduce business risks faced by the country's aviation enterprises, said the Civil Aviation Administration of China (CAAC).

The move came after the sector suffered heavy losses from the outbreak as people were advised to stay at home and reduce traveling to avoid infections.

To ease aviation companies' burdens, revenues generating from transporting anti-epidemic materials and express delivery will be exempt from value-added tax, while necessary compensation shall be granted if they undertake major flight tasks, according to the CAAC.

The regulator also waived airlines' payment to the government's civil aviation development fund starting from Jan 1 and encouraged aviation firms to keep their international flights running.

Efforts will be made to enhance coordination with finance and tax agencies to pool more capital and better utilize policy toolkit to help enterprises pull through, the CAAC said.