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Monday, December 5, 2022

Transport firms likely to enjoy lower taxes

The Saigon Times

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HCMC – The Directorate for Roads of Vietnam under the Ministry of Transport has proposed lowering value-added tax on transport services and corporate income tax to support transport services firms.

The directorate’s recent survey of some transport firms showed that fuel costs for their operations accounted for 35%-45% of their total expenses, the local media reported.

As such, if fuel prices rise while transport charges remain unchanged, the proportion of fuels in their total costs would surge as a result, which will soon force these firms into losses, according to the survey.

In HCMC, since the start of the year, 27 of 53 interprovincial passenger transport service providers have increased their fares by 1.3%-46.3%. In June alone, seven passenger transport operators hiked ticket prices by up to 21%.

HCMC’s two major taxi companies, Mai Linh and Vinasun, have adjusted their fares up by 3%-9%, while ride-hailing firm Grab has increased its fares by 20%.

Some transport operators have yet to increase fares to retain passengers.

In Can Tho City, transport ticket prices at four of nine passenger transport operators have picked up 10%-23%, while Danang City has seen 10 of 17 transport firms revise up fares by 8.3%-13.6%.

Elsewhere in Hanoi City, nine of 50 passenger transport service providers have raised transportation fares by up to 20%.

In addition, the directorate proposed the Ministry of Transport seek approval from the National Assembly to continue weighing a reduction in taxes on oil and gasoline products as transport operators are running into trouble due to high fuel prices, with their perfunctory operations.

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