Aviation proposes to reduce fuel import tax to support recovery

, Aviation proposes to reduce fuel import tax to support recovery

Aviation enterprises have proposed additional forms of support to make good use of business opportunities in the context that Vietnam begins to welcome international tourists again.

In order to facilitate recovery and growth for airlines, the Government has passed a Resolution to reduce the environmental protection tax rate for jet fuel by 50% to 1,500 VND/liter in 2022.

Over the past 2 years, the COVID-19 pandemic has caused many difficulties for the aviation industry. For enterprises that have just entered the market, the impact is even greater due to the lack of reserve resources. Therefore, many airlines have proposed support from input costs such as operating fees, or parking fees at airports.

“According to the Government’s policy, from March 15 to open tourism to international visitors. This is good news for airlines. However, now that we open the door and go ahead, there is still a long way to go. The process of recovery and growth will be somewhere between July and December. Lower input costs will reduce difficulties for airlines,” said Viettravel Airlines General Director Vu Duc Bien.

According to Bui Doan Ne, Vice President of the Vietnam Aviation Business Association, in 2020, the revenue of airlines has decreased by about 100,000 billion VND compared to 2019 because of not being able to welcome international passengers. Mr. Ne said that one of the biggest difficulties of enterprises is the problem of capital.

“Aviation and tourism have a very close relationship. I think that supportive policies are absolutely necessary, especially supporting credit packages and stimulating demand to ensure infrastructure and help businesses. When businesses face difficulties, employees can rest assured,” said Vice Chairman of the Vietnam Aviation Business Association Bui Doan Ne.

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In order to remove the current difficulties, aviation enterprises have proposed the Ministry of Finance and the Ministry of Transport consider reducing the import tax on aviation fuel to 0% instead of 7% as at present.

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