newstodate.aero
Nov 08, 2017 (newstodate): Russia is seeking ways to have more western-built aircraft operated by Russian carriers unto Russian registration.
As of today, out of western-built 743 aircraft operated by Russian airlines, only 133 are flying with Russian registration, while 582 are registered in Bermuda, and 26 in Ireland.
This corresponds to 78 percent of all western-built aircraft operating in Russia for 29 airlines.
Russia's Ministry of Finance is now mulling plans for exempting western-built aircraft from VAT provided they are placed on Russian registration which would ease the financial burden on the country's airlines and facilitate more projects at less risk.
According to the Head of Rosaviatsia, it could however take up to three years to move all the aircraft to Russian registration.
Western-built aircraft with less than 50 seats are already exempted from VAT in Russia.
Abolishing the VAT on western-built aircraft is most probably also a device by the Russian state to benefit the Russian aircraft manufacturing industry as the currently high import tax on western aircraft is cleverly avoided by the Russian carriers' choice of placing their aircraft rather on registers outside the country, rendering Russian-built aircraft less attractive.
As of today, out of western-built 743 aircraft operated by Russian airlines, only 133 are flying with Russian registration, while 582 are registered in Bermuda, and 26 in Ireland.
This corresponds to 78 percent of all western-built aircraft operating in Russia for 29 airlines.
Russia's Ministry of Finance is now mulling plans for exempting western-built aircraft from VAT provided they are placed on Russian registration which would ease the financial burden on the country's airlines and facilitate more projects at less risk.
According to the Head of Rosaviatsia, it could however take up to three years to move all the aircraft to Russian registration.
Western-built aircraft with less than 50 seats are already exempted from VAT in Russia.
Abolishing the VAT on western-built aircraft is most probably also a device by the Russian state to benefit the Russian aircraft manufacturing industry as the currently high import tax on western aircraft is cleverly avoided by the Russian carriers' choice of placing their aircraft rather on registers outside the country, rendering Russian-built aircraft less attractive.