Flag Carriers Ask for Tax Exemption
Domestic airfare price might go up because price of plane gas, supplied by Russia, increased dramatically this month. MIAT Company used to purchase 1 ton gas for USD 1143 but now it has to pay USD 1355 due to price increase. Increase in plane gas price in Russia is related to petroleum price increase in the domestic market and in export tariff. Thus gas price increase makes it impossible to hold domestic airfare price unchanged. Therefore, flag carriers operating domestic flights submitted their request for tax and VAT exemption to the Ministry of Roads, Transport and Tourism through Mongolian Civic Aviation Authority. In doing so, they believe that domestic airfares could be held unchanged.
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