Vietnam to extend jet fuel tax cut to help its airlines

posted on 24th November 2020 by Eddie Saunders
Vietnam to extend jet fuel tax cut to help its airlines

Vietnam plans to extend a 30% reduction in environment tax on jet fuel by one year until the end of 2021 to help local airlines weather the impact of the coronavirus pandemic, its finance ministry said on Tuesday.

The ministry cut the tax from 3,000 dong ($0.13) per litre to 2,100 dong for five months starting from August this year, it said.

“The aviation industry has suffered seriously,” the ministry said in a statement.

“The domestic market is expected to gradually recover for this year and next, but the international market will take a longer time.”

Vietnam’s National Assembly earlier this month approved a government plan to boost the capital of state carrier Vietnam Airlines, which reported a net loss of $453 million for the first nine months of this year as the coronavirus pandemic hammered air travel globally.

($1 = 23,150 dong)