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Russian transport ministry proposes VAT delay on plane import fees

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MOSCOW, October 17 (RIA Novosti) - Russia's Transportation Ministry proposed on Friday granting airlines a 18-month deferment in paying customs duties and VAT on foreign aircraft and components for them.

Deputy Prime Minister Sergei Ivanov said on Thursday that the government was proposing a six-month deferment.

In addition, the ministry annulled import duties on foreign planes and their lease, provided Russian airlines sign a contract with the United Aircraft Building Corporation (UABC) for the delivery of similar Russian planes.

The current tariffs and fees for airport and air navigation services on domestic flights should be preserved until May 1, 2009, the ministry also said.

Recommendations will also be made to lending organizations in which the government has a stake to issue loans to air carriers to help them maintain their businesses amid the ongoing global financial crisis, the ministry said.

The support measures will soon be submitted to the government, the Transportation Ministry said.

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