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On domestic routes the VAT rate was reduced to 10%


From today on the domestic routes of the Russian Federation, the VAT rate was reduced to 10%.

The government, which implemented the current decree, believes that a reduction in the VAT rate will help stabilize the economic condition of domestic air carriers, some of which suffer serious losses. Nevertheless, experts believe that reducing rates alone will not be enough - air carriers should first abandon unprofitable routes, decommission unused aircraft and minimize their own costs from air travel.

Earlier, several major air carriers appealed to the Government of the Russian Federation with a request to further reduce the rate of VAT, however, in that they were denied.

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