Russia's State Duma Committee considers VAT exemptions for imported aircraft registered in Russia

Russia's State Duma Committee for Economic Policy, Industry, Innovative Development and Entrepreneurship reviewed (18-Jul-2019) a draft bill on the provision of value added tax (VAT) exemptions for the import of civil aircraft, engines, parts and components to Russia. Tax concessions will be provided for aircraft registered in Russia's civil aircraft register. Aircraft re-registration is to be completed by 01-Jan-2023. Committee first deputy chairman Vladimir Gutenev said 133 of 740 foreign aircraft are logged in the national register. Mr Gutenev noted: "It is now more correct to talk not of the establishment of preferences for domestic manufacturers, but of the elimination of discrimination in relation to our aircraft manufacturers, where in their own market they are placed in disadvantageous conditions". Mr Gutenev said the measures proposed in the draft bill do not completely resolve the matter but are a first step, which is to be followed by measures on compulsory certification with the Federal Air Transport Agency to ensure safety. Mr Gutenev added by the second reading the possibility of bringing forward the date of re-registration from 2023 to 2021 could be considered. [more - original PR - Russian]