MoF proposes 30% reduction to environmental protection tax on jet fuel

The Ministry of Finance (MoF) has proposed to cut environmental protection tax on jet fuel by 30%, from VND3,000 to VND2,100 per litre.

mof proposes 30% reduction to environmental protection tax on jet fuel hinh 0
Vietnam Airlines currently focuses on domestic flights as the COVID-19 pandemic is still affecting travel worldwide. (Photo: Vietnam Airlines)

The reduction is expected to help remove difficulties for the aviation industry due to the serious impact of the COVID-19 pandemic.

The ministry is collecting ideas and contributions from ministries and sectors to  the National Assembly Standing Committee’s draft resolution on environmental protection tax on jet fuel.

The ministry calculated that with such a reduction, the State budget revenue will decrease VND87.33 billion (US$3.75 million) per month. However, the cut will help air transport businesses ease the financial burden and maintain business operations as the COVID-19 pandemic is still serious and unpredictable worldwide.

The finance ministry asked ministries, sectors, localities and agencies to send their comments before June 10, 2020. This resolution is expected to be effective until the end of this year.

VNA