HCMC – The Ministry of Finance has yet to agree to exempt the environmental protection tax on jet fuel as previously proposed by airlines.
Due to the impact of Covid, the ministry proposed the Government issue two resolutions to reduce the environmental protection tax on jet fuel by 30% from VND3,000 per liter to VND2,100 in 2020. The resolutions were valid for 17 months, between August 2020 and December 2021.
To continue helping the aviation sector ride out the difficulties and recover in the new normal, the ministry also proposed the National Assembly Standing Committee issue Resolution 13 to extend the reduction in the environmental protection tax on jet fuel until the end of 2022.
Under the resolution, the tax is cut by 50% to enhance support for the aviation sector, the local media reported.
The reduction has relieved the aviation sector and aviation firms, helping carriers maintain their operations.
In addition to the reduction in environmental protection tax, the aviation industry is also entitled to several tax incentives, including a cut in value added tax (VAT) from 10% down to 8%, an extension for the payment deadlines of VAT, corporate income tax, personal income tax and land rentals, and exemption from some fees and charges, according to the ministry.