Sunday 15 April 2012

Authorities mull exit tax for leaving Russia

Travelers might soon be obliged to pay to leave Russia as officials are considering a new exit tax for international passengers.
The levy is needed to boost domestic flight demand which would be freed of the value added tax, according to the proposal submitted by the Transport Ministry.
Ticket prices for international routes might rise by up to 1,000 rubles, but experts are dubious as to whether flying within the country’s borders will become cheaper.
Zero VAT on domestic flights could leave the budget without annual 32 billion rubles, but transport officials want travelers to plug that hole.
Exit taxes for international flights have been proposed “from national airports for all commercial flights regardless of the carriers’ national identity.
The document has been submitted to the Finance Ministry, which has yet to announce its decision.

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