While in Germany or Austria, for example, the governments have artificially made flying more expensive by raising taxes, Ukraine wants to take a different path. The abolition of VAT on domestic flights is planned. The aim is to support the ailing airlines.

Prime Minister Denys Shmyhal announced that he would like to cut the cost of flights within Ukraine. One of the ways to achieve this goal is the planned abolition of the 20 percent VAT on domestic connections. Transport Minister Vlayislav Krikliy told the Unian news agency that he assumes that the tax rate will be reduced to zero percent and that it will be implemented this year.

“It is very important that we set an example that shows that aviation is not a secondary issue for us, but has priority. Aviation is very important to Ukraine, ”the minister told Unian. SkyUp and Ukraine International, among others, have been calling for a reduction in VAT on domestic flights in recent months. Most recently, British Prime Minister Boris Johnson also brought one Tax cut for domestic flights in the game.

In Austria, in the middle of the corona crisis, the Short- and medium-haul taxation increased dramatically. Transport Minister Leonore Gewessler (Greens) even quit in the summer Minimum prices for airline tickets at. These are questionable under European law. The controversial project has not yet been implemented.