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Finance ministry eyes 50 pct cut in jet fuel tax

By Dat Nguyen   November 25, 2021 | 09:56 pm PT
Finance ministry eyes 50 pct cut in jet fuel tax
A Vietnam Airlines aircraft lands at Tan Son Nhat International Airport in Ho Chi Minh City, June 15, 2020. Photo by VnExpress/Quynh Tran
The Ministry of Finance plans to halve tax on jet fuel for the whole of next year to help the Covid-19-stricken aviation industry recover.

The tax would be reduced from VND3,000 ($0.13) per liter to VND1,500, the ministry said in a draft plan which it will submit to the government and National Assembly.

The current tax is VND2,100 after a cut of 30 percent since August.

Assuming airlines would consume the same 70-96 million liters a month they did last year, there would be a VND1.39-1.9-trillion fall in tax revenues with the 50 percent cut, the ministry said.

Vietnamese airlines saw their combined revenues drop by 60 percent last year, and things could be even worse this year since nearly all flights have been suspended since early May, according to the Vietnam Aviation Business Association.

Many other countries are also supporting their airlines amid the pandemic.

China and Thailand have cut taxes and fees, while Singapore and Canada have pumped cash into airlines.

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