The Ministry of Finance of Russian Federation has prepared a bill on the introduction of zero value-added tax (VAT) for flights to the Far East and back.

Previously, the The Ministry for Development of Russian Far East proposed to abolish VAT for Far Eastern flights.

The ministry proposed to apply 0% rates for the VAT for companies that provide services for domestic air transport of passengers and baggage, provided that the point of departure or destination of passengers and baggage are located in the Far Eastern Federal District. A similar measure should be introduced for flights to Kaliningrad by 2018.

Now VAT for Russian airlines operating domestic flights is 10%. The tax is not paid only by air carriers flying to the Crimea, and also when flying abroad.