Ministry asks government to cut tax for transport firms

08-Apr-2020 Intellasia | VNS | 6:02 AM Print This Post

The Ministry of Transport has asked the government to assign the Ministry of Finance to consider reducing several taxes for transport businesses.

For the civil aviation industry, the ministry has asked the government to exempt import and environmental protection taxes on flight fuel from January 23 to December 31, 2020.

In case of difficulties balancing the budget, the ministry expected the government to cut half of these taxes and allow businesses to delay tax payments and budget contributions.

The ministry also asked for reduced or suspended payments for corporate income, personal income and foreign contractor taxes from January 23 to December 31, 2020. Businesses are expected to enjoy cuts to value-added tax on domestic transport over three years.

Last month, the ministry said the aviation sector would be heavily impacted by the COVID-19 pandemic, causing an estimated loss of about VND30 trillion (US$1.29 million).

National flag carrier Vietnam Airlines, which holds nearly 40 per cent of the domestic market share, recently said that it would reduce its supply by 60 per cent, causing a decrease of VND50 trillion in revenue, or 65 per cent of its target.

More than 50 per cent of Vietnam Airlines employees had stopped working, while wages had been reduced.

In the maritime sector, the ministry said the number of vessels transporting goods entering and leaving ports had decreased by 15 per cent in recent months. As for passenger ships from other countries to Vietnam, the number had fallen 30 per cent year-on-year, and was expected to fall further this month.

Meanwhile, the volume of inland waterway and freight had fallen by 10 per cent. Revenue from road logistics had fallen sharply by 40-80 per cent compared to the same period last year and prior to the outbreak.

http://bizhub.vn/news/ministry-asks-govt-to-cut-tax-for-transport-firms_314552.html

 


Category: Economy, Vietnam

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