Russia considering reinstating foreign aircraft duties

In News by justin

The Russian government is planning to reinstate import duties on select foreign-built passenger aircraft the Vedomosti newspaper has reported quoting informed sources.

Russia originally suspended duties on foreign-built 50- to 300-seater aircraft back in 2010 so as to allow Russian carriers to accelerate their fleet expansion rates.

The current measure, rolled over in 2013, is due to expire on December 31 of this year and while there has been a push to renew its validity through to January 1, 2020, there has also been pressure to reinstate taxation albeit on aircraft older than twelve years of age.

According to the Rusaviainsider site, the levies may entail either a charge of between 7.5 to 15.7% of the aircraft’s value or a VAT rate of 18%. If introduced, they will be enforced from 2017 onwards. 50 to 110-seater aircraft are likely to be excluded.

Moscow is attempting to use Western-sponsored economic sanctions to spur development in the country’s homegrown aviation industry – the SSJ 100-95 and the MC-21 programmes in particular.