The Russian government has slashed the import duty on business aircraft from 20% to 10% and is considering abolishing the tax within six months.
The move follows years of lobbying by the international business aviation community, which has criticised the duty on non-Russian-built aircraft and spare parts as both restrictive and counter-productive in a country where demand for Western-made business aircraft has reached unprecedented levels,
According to Flight ACAS data there are 13 Western-built corporate jets on the Russian register, but estimates show there are around 200 business jets that are directly or indirectly owned by Russian companies, many of which are registered in Aruba, Austria, Bermuda, the Cayman Islands and Luxembourg to avoid paying the duty.
The initial tax cut will apply to aircraft weighing 15-20t, but is likely to be extended in the fourth quarter to smaller aircraft weighing 2-15t.
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Source: Flight International