Proposal to reduce tax for transport businesses

Accordingly, the Ministry proposes to the Prime Minister to direct the Ministry of Finance to decide or request competent authorities to allow exemption or reduction of fees for using railway infrastructure, fees for entering and leaving seaports and inland waterways and tax reduction Value added for transportation services, corporate income tax.

The localities shall decide or request the competent authorities to adopt policies on exemption and reduction of fees for the use of infrastructure in the seaport border gate area; parking fees, parking to pick up guests at the station, port.

The Ministry of Transport will consider issues related to aviation service pricing policy to support airlines. At the same time, the ministries and branches consider prioritizing transport enterprises to access loans to support.

(Artwork: Photo: Investment Newspaper)

According to the Ministry of Transport, from the first period of petrol price management in 2022 (January 11 – March 11, there have been 6 periods of price management). Petrol prices of all kinds increased from 4,625 to 7,030 VND/liter/kg, equivalent to an increase of 24.91 – 39.56%. Meanwhile, fuel costs usually account for the largest proportion in the structure of transportation costs, averaging 35-50% depending on the mode of transport.

Previously, fuel costs accounted for about 30-35% of the cost of trucking operations. However, proportional to the increase in gasoline and oil prices, fuel costs now account for 40-45% of the cost of road transport. Road is the most sensitive sector to fuel price fluctuations, so trucking companies also tend to propose price adjustments.

Up to now, about 80-90% of passenger transport enterprises on fixed routes have declared to increase transport rates to offset fuel costs with an increase of 10-15%. Freight rates are also adjusted to increase by 7-10%.