The transport Ministry will once again offer zero VAT for domestic flights

Moscow. December 3. The transport Ministry will once again offer zero VAT for domestic flights, told journalists the head of Department Maxim Sokolov.

Previously head of Department of state policy in civil aviation of Ministry of transport Andrey Ivanov at the “round table” in the Federation Council on Monday said that the Ministry proposes zero VAT for domestic flights is as anti-crisis measures to support airlines in 2-3 years.

According to him, the reduction of VAT to 10% gave a “certain effect”. “We estimate that about 23 billion rubles. On the other hand, I would like to note that the total cost of subsidizing regional traffic of all five programs is about 9 billion, this is a very small amount. If you count the cost, as the Railways consider subsidy for all passengers, they have a synergetic effect is obtained for all 450 rubles, the air turns 180 rubles per passenger,” added the official.

In early September it was reported that the governmental Commission on economic development and integration on September 1, did not support the proposal of the Ministry of economic development about the zero VAT rate to the airlines for a period of 3 years. “The proposal found no support,” said the source, adding that the reasons unknown to him.

Earlier, the government to support airlines, in June of the current year reduced VAT on domestic flights from 18% to 10%, but many air carriers advocated its nullification. In mid-July it was reported that the Association of air transport operators (air transport operators Association) has written to the Deputy Prime Minister Arkady Dvorkovich the letter in which asked to establish a zero rate VAT on domestic air travel.