Khloponin proposes scrapping VAT for domestic flights

The government should lift valued added tax for flights in Russia, vice-premier and the president’s envoy to the North Caucasian Federal District, Alexander Khloponin, said on Thursday, RIA Novosti reports.

The measure would reduce the cost of flights by 20%, he said. Khloponin pointed out that VAT meant it was often cheaper to fly from Moscow to Germany than from Moscow to certain Caucasus regions.