Tajikistan’s lower chamber (Majlisi Namoyandagon) last week endorsed amendments made to the country’s Tax Code.
Presenting the amendments to lawmakers, Finance Minister Faiziddin Qahhorzoda noted that the amendments provide for exempting domestic air carriers – Tajik Air and Somon Air — from paying value added tax (VAT) when importing aircraft (planes and helicopters), engines and fuels and lubricants for them into the country.
Non-resident companies (foreign companies) providing services to domestic air companies are also exempt from paying VAT on leasing transaction (aircraft lease).
The companies are reportedly exempt from paying VAT for the period until 2027.
The amendments are made to support recovery of domestic civil aviation companies and bring appropriate articles of the country’s Tax Code with others legal acts of the country, the minister noted.
He further added that the amendments contribute to the achievement of goals of national strategies and programs aimed at supporting development of the country’s civil aviation and elimination of contradictions in the implementation of the Tax Code.
It is to be noted that currently only one domestic air carrier, Somon Air, operates in Tajikistan’s civil air traffic market.
The national air carrier, Tajik Air, has not been in operation for already years as it does not have aircraft suitable for this.
Over the first six months of this year, ten foreign air carriers, including five Russia air companies (Utair, Ural Airlines, Northwind Airlines, S-7, and Yamal Airlines), Uzbek Airways (Uzbekistan), FlyDubai (UAE), Turkish Airlines (Turkiye), and Varesh Airlines (Iran) have operated in Tajikistan’s civil air traffic market.
Somon Air has accounted form 18 percent of total volume of passenger traffic in Tajikistan’s market.
Somon Air is the first private airline in Tajikistan with an office headquartered in Dushanbe. The airline operations are based at Dushanbe International Airport. The airline started operating on February 5, 2008 with regular flights to Moscow and Dubai. Somon Air also serves as the official carrier of President of the Republic of Tajikistan and other Tajikistan high-ranking officials.
