Russia considers reinstating duties on foreign aircraft

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

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Russia originally suspended import taxes on foreign-built aircraft with 50 to 300 seats back in 2010, to allow Russian carrier to acceleriate their fleet expansion rates.

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

According to Rusaviainsider, the levies may entail either a charge of between 7.5 to 15.7% of the aircraft’s value or a VAR rate of 18%.

If this taxation will be introduced, it will be enforced from 2017 onwards. Aircraft seating 50 to 110 passengers are likely to be excluded.

Moscow is attempting the move to spur development of the homegrown aviation industry, the SSJ 100-90 and the MC-21 programs in particular.


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