Vietnam Civil Aviation Authority proposes air ticket prices hike
In a recent proposal sent to the Ministry of Transport, CAAV asked for a reduction in environmental protection taxes and import taxes on jet fuels, and an increase in service fees on domestic routes.
CAAV proposed to raise passenger transportation fees on domestic routes by 3.75 percent to the rate set in 2014. Meanwhile, it wanted the government to reduce or waive environmental protection taxes and import taxes on fuels until the end of 2023.
According to CAAV, if fuel costs account for over 39 percent of total costs and other costs stay the same, local airlines are seeing the fuel costs for July 2022 rising by up to nearly 93 percent compared to that of December 2014, and by nearly 115 percent compared to that of September 2015. And the rising fuel costs are driving total costs for July 2022 up by 39 percent against December 2014 and by over 46 percent against September 2015.
The government has just proposed to the National Assembly Standing Committee to cut environmental taxes on energy. Following the government's proposal, the environmental protection tax on jet fuel will be lowered to VND1,000 per litre from the current VND1,500.