The Ministry of Transport of the Russian Federation advocates the cancelation of value added tax (VAT) on all aircraft.
This was stated by the Deputy Minister of Transport of the Russian Federation Valery Okulov at the Eurasian Transport and Logistics Forum held last week.
According to him, VAT negatively affects the state of the airlines. "We are interested in not imposing additional financial burden on carriers, which ultimately falls on passengers," V. Okulov said. He noted as an example that in some countries VAT on aircraft is zero.
Also, the Deputy Minister of Transport of the Russian Federation noted that the final decision on the cancelation of value added tax on aircraft will be taken by the Ministry of Finance of the Russian Federation.