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Kolesnikov calls for cancellation of VAT on tickets for domestic flights

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July 17, 2012, 7:29 p.m. | Ukraine — by Interfax-Ukraine

The Ukrainian government hopes lawmakers will cancel value added tax on tickets for domestic flights with the opening of their new session in September.
© komitet12.org.ua

Abruzzo, Italy - The Ukrainian government hopes lawmakers will cancel value added tax on tickets for domestic flights with the opening of their new session in September.

"VAT on domestic [tickets] sales should be lifted. No other solution has been invented. This is not that easy: the Tax Code has to be amended," Ukrainian Vice Premier and Infrastructure Minister Borys Kolesnikov said at a briefing in the Italian region of Abruzzo while answering a question about when the prices of air tickets are to be lowered.

Kolesnikov said he hopes the issue will be considered as soon as parliament opens its next session.

"We will change the Tax Code as early as at the first meeting of the Verkhovna Rada's September session," he said.

He also said fair competition would have a positive impact on the situation.

"I believe this issue will be resolved very quickly. VAT [on tickets for domestic flights] will be cancelled at least by the time the winter schedule starts," he said.

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