June 05, 2020 15:53

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Ministry proposes cutting taxes for transport firms

15:38 | 07/04/2020

The Ministry of Transport has proposed the Government assign the Ministry of Finance to consider reducing several taxes for transport businesses affected by COVID 19

ministry proposes cutting taxes for transport firms

Coaches at Giap Bat Bus Station in Hanoi (Photo: VNA)

For the civil aviation industry, the ministry has suggested 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% of the domestic market share, recently said that it would reduce its supply by 60%, causing a decrease of VND50 trillion in revenue, or 65% of its target.

More than 50% 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% in recent months. As for passenger ships from other countries to Vietnam, the number had fallen 30% year-on-year, and was expected to fall further this month.

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

Source: VNA