VAT for air navigation services additional burden on domestic air companies

DUSHANBE, April 23, 2011, Asia-Plus — Director general of Tajikaeronavigatsiya (Tajik air navigation) Anvar Maqsoudov considers that an 18 percent value added tax (VAT) imposed for air navigation services is an additional burden on domestic air companies. “VAT on air navigation services, which had previously been collected only from international flights, is now collected from […]

Rasoul Shodon

DUSHANBE, April 23, 2011, Asia-Plus — Director general of Tajikaeronavigatsiya (Tajik air navigation) Anvar Maqsoudov considers that an 18 percent value added tax (VAT) imposed for air navigation services is an additional burden on domestic air companies.

“VAT on air navigation services, which had previously been collected only from international flights, is now collected from domestic flights as well,” said Maqsoudov, “It is an additional burden on local air companies, and therefore, there is nothing else left for them to do but to raise fees for their services.”

According to him, Tajikaeronavigatsiya has paid taxes for more than 2.4 million somoni over the first three months of this year.

Over the same three-month period, Tajikaeronavigatsiya’s gross revenue has reportedly amounted to 7.615 million somoni, which is 20 percent lower than in the same period of 2010.  In January-March this year, Tajikaeronavigatsiya has reduced its expenditures by 30 percent, Maqsoudov added.  

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