Finance ministry propose to extend 30% jet fuel tax cut till end-2021

Earlier, Vietnam government decided to lower 30 percent of environmental protection tax on jet fuel to VND2,100 ($0.09) from VND3,000 ($0.13) per liter till end-2020, with the hope to help the industry to recover after severe impacts of the Covid-19 pandemic.

In the latest statement, the ministry said that the world economy in 2021 could be seriously affected by the pandemic, and the domestic economy still faces challenges.

It is expected that the domestic aviation market will recover gradually in 2021 but still face many difficulties, especially the international market needs a long time to recover.

The tax cut will cost the State budget revenue at VND80 billion ($3.4 million) each month and VND1 trillion ($43 million) in 2021.

The reduction of environmental protection tax is expected to help air transport firms to reduce their financial burden, maintain their business amid the negative impacts of Covid-19 pandemic.

► Vietnam to cut 30% jet fuel environmental tax to back virus-hit carriers

► Vietnam Airlines reports $463mln losses in 9 months