The Russian Government is drafting new proposals which would tighten up the rules on tax exemptions granted for imported aircraft. The proposed government order, which is now at draft stage, is designed to protect the country's own struggling aircraft manufacturing industry.
The measures would effectively mean that a domestic carrier buying or leasing foreign aircraft could only win an exemption from heavy import taxes if it could show that it was also investing in substantial numbers of Russian-produced aircraft. The exact balance between Russian and foreign aircraft is still under discussion, but reports from Moscow suggest that a fivefold ratio is included in the draft document. In the past, decisions over granting tax waivers for aircraft import deals has been studied on a case-by-case basis.
Economics minister Yakov Urinson says that the tighter regulations being laid down will help to "-balance the interests between manufacturers and aircraft operators".
The proposals, however, have met with strong opposition from Russia's commercial aircraft operators, which have been using greater numbers of foreign aircraft on the grounds of greater efficiency and better operating economics. Aeroflot is still waiting to see whether it will win tax exemptions for its recent order for 10 Boeing 737-400s and two 777s.
Source: Flight International
