Monday, October 23, 2017

Russian agencies seek to add air travel tax

The Russian Ministry of Transportation and Federal Anti-monopoly Service has drafted an ordinance that would introduce new taxes for air travelers.

Officials from the ministry confirmed that the proposed tax legislation has been passed to government officials for review. Ministry representatives said that the tariffs will be levied on all commercial entities operating at Russian airports as a means to generate additional funds for infrastructure and development, Mir66 reports.

Sources familiar with the proposed tax legislation indicate that the ordinance authorizes commercial entities to pass the added fees onto ticket prices for air travelers. Transportation ministry officials hope that the infrastructural improvements funded by the taxes will continue to attract outside investors to participate in ongoing efforts to modernize Russian airports.

In recent years, Russian transportation officials have sought to increase the number of Russian air passengers by reducing the price of domestic air travel. The new tax proposal, however, will call for price increases for both international and domestic flights operating in Russia, according to Mir66.