Armenian government to eliminate 'air tax'
14.11.2019,
16:10
The Armenian government decided today to amend the law On State Duty and exempt any airline that will launch flights to new destinations from Armenia from a fixed $21 tax levied from every air ticket sold in the country.
YEREVAN, November 14. /ARKA/. The Armenian government decided today to amend the law On State Duty and exempt any airline that will launch flights to new destinations from Armenia from a fixed $21 tax levied from every air ticket sold in the country.
Territorial Administration and Infrastructure Minister Suren Papikyan said the annual budget revenue generated by air taxes amount to about 11-12 billion drams. Papikyan said there is reason to believe that the move will have a positive effect, especially considering that this will facilitate the launch of new destinations from Armenia.
According to the minister, the move will allow creating a competitive environment and besides, due to the multiplier effect, the state budget will receive additional revenues.
Prime Minister Nikol Pashinyan expressed confidence that this decision will have a serious impact on airfare pricing and economic development of the country, as well as inspire foreign investors.
Armenian Civil Aviation Committee chief Tatevik Revazyan said apart from RyanAir, which has already announced its intention to operate budget flights from Armenia to Italy and Germany, other airlines also showed interest.
She said the Russian Azimuth has already announced its intention to operate flights from Armenia to the Russian city of Kaluga. The maiden flight is very likely to be on December 14. She said other companies showing interest in Armenia's air transportation market are AirBaltic airline, and low-cost Wizz Air airline.
"We have already received proposals to launch 8 new destinations and expect that by summer their number will increase to 10," Revazyan said, adding that local companies are also interested in discussing the possibility of implementing flights to another 10 destinations. ($1 - 477.46 drams). -0-
Territorial Administration and Infrastructure Minister Suren Papikyan said the annual budget revenue generated by air taxes amount to about 11-12 billion drams. Papikyan said there is reason to believe that the move will have a positive effect, especially considering that this will facilitate the launch of new destinations from Armenia.
According to the minister, the move will allow creating a competitive environment and besides, due to the multiplier effect, the state budget will receive additional revenues.
Prime Minister Nikol Pashinyan expressed confidence that this decision will have a serious impact on airfare pricing and economic development of the country, as well as inspire foreign investors.
Armenian Civil Aviation Committee chief Tatevik Revazyan said apart from RyanAir, which has already announced its intention to operate budget flights from Armenia to Italy and Germany, other airlines also showed interest.
She said the Russian Azimuth has already announced its intention to operate flights from Armenia to the Russian city of Kaluga. The maiden flight is very likely to be on December 14. She said other companies showing interest in Armenia's air transportation market are AirBaltic airline, and low-cost Wizz Air airline.
"We have already received proposals to launch 8 new destinations and expect that by summer their number will increase to 10," Revazyan said, adding that local companies are also interested in discussing the possibility of implementing flights to another 10 destinations. ($1 - 477.46 drams). -0-
