Cut to environment tax on jet fuel proposed
The Ministry of Finance has proposed a cut of the environment tax on jet fuel by half in order to support the local aviation industry amid the ongoing Covid-19 pandemic.
Under the ministry’s recommendation sent to the government, the tax would be halved to VND1,500 (USD0.0662) per litre from VND3,000 for the whole of next year.
Under the ministry’s recommendation sent to the government, the tax would be halved to VND1,500 (USD0.0662) per litre from VND3,000 for the whole of next year.
The Ministry of Finance has proposed a cut of the environment tax on jet fuel by half
According to the Ministry of Finance, since the second half of 2020, the government has lowered the environmental tax on jet fuel by 30% to VND2,100 per litre.
National flag carrier Vietnam Airlines said that the lower fuel tax had helped the firm to save VND155 billion (USD6.73 million) in 2020 and VND164 billion in 2021.
Since late April 4 when the fourth Covid-19 wave hit Vietnam, most Vietnamese airlines have been nearly suspended. So the lower jet fuel tax policy has not assisted the local aviation sector as effectively as expected.
Leave your comment on this story