|
Air, sea services get zero VAT
The Ministry of Finance is to scrap value added tax from next month on aviation and maritime services.
The new rate will replace the current one of between 5-10 per cent on ticket prices, airport ground services, transport contracts on international route and freight handling.
The Viet Nam Aviation Department said the tax exemption would help to offset additional costs incurred by airlines and passengers during the global economic crisis and higher fuel prices.
Domestic carriers have sustained huge losses since the crisis began that have been only slightly alleviated by the Government’s decision to allow airlines to set their own prices.
Vietnam Airlines, the national-flag carrier, has made little profit despite introducing cost-saving measures.
Airlines are hoping to make further cost savings when four new air routes open next month, allowing them to cut flying times and save fuel.
The aviation authority estimates that with the four new routes, carriers could potentially save about 28 flying minutes, equivalent to US$11,200 flying up and down the country.
vietnamnews
|
