The Russian Government is reported to have cemented proposals for tighter rules over tax exemptions for airliner imports. The final wording represents a compromise formula under which a Russian airline can claim exemption, provided it spends three times more on domestic-built aircraft than it would save on the tax discount.
Aircraft for which a "-Russian-produced counterpart does not exist" can still be exempted from the import tax. This gives a green light for a tax waiver on the Boeing 777-200 recently acquired by Aeroflot-Russian International Airlines, given that the alternative Ilyushin Il-96M is not expected to be ready for delivery before next year. It leaves doubt over 10 Boeing 737s on order by Aeroflot, however.
The document is seen as a compromise between the counter-claims of the country's airlines and its manufacturers. It was prompted by Aeroflot's intention to acquire 31 Boeing and Airbus airliners to modernise its fleet, for which the carrier, with the approval of the Federal Aviation Service, applied for tax exemptions last December.
In April, the ministries of finance and economy agreed on tax discounts for 16 aircraft on condition that Aeroflot would buy five Il-96s and four Tupolev Tu-204-200s by 2001. Another 15 Il-96s and 20 Tu-204s were then due by 2010, plus 50 Ilyushin Il-114/Antonov An-140 regional aircraft.
The demands met with protests, including an official letter from the US ambassador in Moscow to Yakov Urinson, the minister of economy. The USA pointed out that the draft document contradicts a US-Russian aircraft deal signed in 1996 and is in conflict with Russia's aim of joining the World Trade Organisation.
Source: Flight International
