Ukraine mulls slashing VAT rate for domestic flights

Ukraine mulls slashing VAT rate for domestic flights

The Ministry of Infrastructure of Ukraine has proposed to reduce the VAT rate for domestic air transportation services from 20% to 7%.

That’s according to Minister of Infrastructure of Ukraine Oleksandr Kubrakov, who spoke at the “Great Construction: Aviation. Tourism” Forum on November 25, an Ukrinform correspondent reports.

"I should remind you that there is a zero rate for international air transportation, while a rate for domestic transportation is 20%. The compromise we discussed is a rate of about 7%," the minister said.

Read also: Ukraine mulls compensation to domestic air carriers for evacuation flights

He added that such a decision would reduce fares for domestic flights by 10-20%, which would, in turn, boost domestic air traffic and make flights more accessible to the passengers.

As Ukrinform reported, Prime Minister Denys Shmyhal during a meeting on the development of domestic air transportation services on November 24 instructed the Ministry of Infrastructure to process and submit proposals for reducing the cost of tickets for domestic flights.


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