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Federation Council supported the reset of VAT for air traffic bypassing Moscow - EastRussia | Far East

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Federation Council supported the reset of VAT for air traffic bypassing Moscow

Federation Council supported the reset of VAT for air traffic bypassing Moscow
Photo: pixabay.com

On Wednesday, May 29, the Federation Council approved the law, according to which air travel, bypassing aviation hubs of Moscow and the Moscow region, will be subject to zero VAT, сообщает RIA News.

This measure should strengthen the regional airline companies, reduce the cost of air travel between the cities of the Russian Federation and encourage domestic carriers to purchase new aircraft and train new specialists. According to Deputy Prime Minister Maxim Akimov, in spite of the reduction in budget revenues in the first time after the law came into force, the expected effect of the new rule will support the industry at least 10 billion rubles annually.

Earlier, the State Duma of the Russian Federation took in the third reading, amendments to the Tax Code, according to which all domestic air transportation, the point of departure, arrival, and all intermediate points which are outside the Moscow air hub, are subject to a zero VAT on a perpetual basis. At present, up to 2021, the VAT on domestic flights in Russia was 10%.