- The 2026/2027 budget prioritizes tax reforms to modernize tax administration, improve revenue collection, and support economic growth.
- It proposes extending VAT exemptions to include turbojets, turbo-propellers, gas turbines (HS 84.11), and aircraft tyres (HS 4011.30.00).
- The current VAT exemption already covers aircraft, aircraft engines, aircraft parts, and aircraft maintenance for local air transport operators.
- The new exemption may not be limited to local operators, potentially broadening its scope.
- The measure aims to reduce aviation operating costs and encourage investment in the sector.
Source: assets.kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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