The Ministry of Finance has proposed to cut environmental protection tax on jet fuel by 30 per cent, from VND3,000 to VND2,100 per litre.
Vietnam Airlines currently focuses on domestic flights as the COVID-19 pandemic is still affecting travel worldwide. — Photo Vietnam Airlines
The reduction is expected to help remove difficulties for the aviation industry due to the serious impact of the COVID-19 pandemic.
The proposal is part of the National Assembly Standing Committee’s draft resolution on environmental protection tax on jet fuel, which has been sent to gather ideas and contributions from ministries and sectors.
The ministry calculated that with such a reduction, the State budget revenue will fall VND87.33 billion (US$3.8 million) per month. However, the cut will help air transport businesses ease the financial burden and maintain business operations as the COVID-19 pandemic is still serious and unpredictable worldwide.
The finance ministry asked ministries, sectors, localities and agencies to send their comments before June 10, 2020. This resolution is expected to be effective until the end of this year.
Viet Nam has initially controlled the pandemic; however, the disease continues to cause issues around the world.
Restrictions on travel as well as interrupted production and business activities have made the aviation industry one of the most affected sectors.
According to the assessment of the Civil Aviation Authority of Vietnam, if the pandemic is controlled this month, the 2020 transportation market will reach only 61.2 million visitors, down 22.6 per cent year-on-year.
Of the figure, Vietnamese airlines are estimated to carry 10.4 million foreign visitors and 35.3 million domestic visitors, down 41.2 per cent and 5.5 per cent, respectively. — VNS
Fuel price stabilisation fund helps the central government manage domestic fuel price in a foreseeable future.
Vietnam plans to enact a law to fight against the transfer pricing tax in an effort to enforce transfer pricing rules more aggressively, according to Cao Anh Tuan, general director of the General Department of Taxation (GDT).