The Ministry of Finance has proposed to reduce to zero the value added tax (VAT) for domestic flights not passing through Moscow. About this newspaper “Vedomosti”.
photo: Natalia Muslinkina
At the same time, the Agency has initiated to increase from the current 10 to 18% VAT for flights that go through the air port of the Russian capital. According to the publication, it became known from the document assistant to the President of the Russian Federation Igor Levitin has directed to the address of the Minister of transport Maxim Sokolov. The authenticity of the letter confirmed to the newspaper close to the Ministry of transport sources and a high-level Manager of one of the major airports.
According to the document, the Ministry of Finance is discussing the option to make a “maneuver” for VAT purposes until the end of 2022. Now for all domestic flights VAT is 10%.
According to a source close to the Ministry of transport, the zero VAT for non-Moscow flights will Supplement the budget airlines for 12 billion virtually any, however as a result of the tax increase on flights through the airports of Moscow, they will lose about 29 billion annually. According to his calculations, based on statistics 2017, in total, the carriers lose approximately 17 billion virtually any a year.
The newspaper writes that the representative of the Ministry of transport has not confirmed receipt of a letter Levitin. “But the position of the Ministry of transport is as follows: VAT on routes bypassing Moscow is reduced to zero, and at the Moscow flight have to save at 10%”, — he explained. The request for publication the representative of the Ministry of Finance did not answer.
“We are pleased that the initiative for the promotion of inter-regional air transportation by zeroing is completed, the VAT for such flights is supported by the government”, — the newspaper quotes words of the representative of “Airports of regions”.
In September last year, Russian President Vladimir Putin instructed by 2018, the zero rate of VAT on air passengers for the Kaliningrad region. Before the meeting on development of transport infrastructure of the North-Western regions of Russia, the Russian leader said that the Kaliningrad it is necessary to subsidize the 10% VAT or even to abolish this tax as an exception to the Kaliningrad region. He called Kaliningrad “enclave is the only” region of the Russian Federation. Previously VAT zero rate was only for air travel to the Crimea and back.
In April 2015, the Russian government gave a negative decision on a draft law to abolish VAT on all transport within the country.
At the same time, the Cabinet of Ministers submitted to the state Duma a bill to reduce the 10% VAT rate on domestic air flights of passengers and Luggage. On 27 March, the lower house of Parliament passed the amendments in the second and third readings.