The Ministry of Finance rejected the proposal for tax exemption and reduction of airlines

Last month, some airlines petitioned the Government to consider exempting corporate income tax in 2022, reducing value added tax (VAT) to 5% and Import duty free with jet fuel (reduced from 7% to 0%). This recommendation was made in the context that the aviation industry is under a lot of pressure from high fuel prices and has not yet recovered when it has suffered heavy impacts for two years because of the epidemic.

Responding to this issue, the Ministry of Finance recently said that corporate income tax and VAT comply with the Law on Corporate Income Tax and the Law on Value Added Tax. Therefore, the Ministry of Finance believes that the proposal to reduce VAT from 10% to 5% and exempt from corporate income tax is decided by the National Assembly.

As for VAT, according to the Ministry of Finance, aviation businesses also benefit from the policy of reducing the tax rate by 2%. At the same time, this Ministry has submitted to the Government a draft decree extending the deadline for paying taxes and land rents for a number of subjects, including the aviation industry.

In addition, the aviation industry is also benefiting a lot from the Government’s policy of reducing, exempting taxes, fees, and land rents to support people and businesses to remove difficulties and promote production and business due to effects of Covid-19.

As for the aviation industry, the current environmental protection tax on jet fuel is 50% in 2022.

Currently, the preferential import tax rate (MFN) for aviation fuel is 7%. If importing jet fuel from a number of countries that have signed a Free Trade Agreement (FTA) with Vietnam as a member such as ATIGA, ASEAN – China… the MFN tax rate is 5% on a principled basis. reciprocity.

“Thus, compared to many other manufacturing industries, the aviation industry not only benefits from supportive policies on taxes, fees, and general fees, but also receives support in reducing environmental protection taxes on jet fuel. right from the time the Covid-19 epidemic broke out”, the Ministry of Finance acknowledged.

Given the difficult budget context, but still have to ensure important spending tasks, the Ministry of Finance said that asking for additional solutions to support the aviation industry needs careful consideration and calculation. ensure harmonization of interests of enterprises and the State.

With the negative impact of recent gasoline prices, the ministry said it had submitted to the Government and National Assembly for approval the fiscal and monetary policies to support the program of socio-economic recovery and development, including relaxation. , reducing a number of taxes, fees, charges and land rent with a scale of about 223,000 billion VND.

In 2020, the total scale of support solutions is about 129,000 billion VND. In 2021, support solutions have been continued to be deployed at a higher level in both content and support value with a total scale of about VND 145,000 billion.

Mr. Minh