Dvorkovich: the zero VAT for domestic flights may come into force in 2016


MOSCOW, December 11. The zero VAT for domestic flights may come into force in 2016. This was announced by Deputy Prime Minister Arkady Dvorkovich.

“We hope that next year”, – he told, answering an appropriate question.

Earlier the Ministry of transport has proposed the government to take a law to eliminate VAT on that already has an anti-crisis measure of the reduced VAT rate of 8% to 10%. Minister of transport Maxim Sokolov has estimated that the zero VAT for domestic flights will give the airline 20 billion – about as much they lost from the closed areas (Turkey, Egypt, Ukraine).

However, in September 2015, the government Commission on economic development and integration chaired by first Deputy Prime Minister Igor Shuvalov did not support the proposal of the Ministry of economic development about the zero VAT for domestic flights is three years.

Losses of the Russian carriers for the first half of 2015, according to the Association of air transport operators amounted to over 28 billion rubles. The suspension of flights to Egypt, according to the airlines this year will lead to financial losses in the amount of 9 billion rubles.