Vietnam Airlines: Airfare to be Higher Next Year
Vietnamese airlines has feared that airfare will be higher in 2009 as the Finance Ministry raises value added tax on air ticket to 10 per cent from January 1, 2009, from current 5 per cent, local media reported.
The airlines said they are on the defensive as the ministry has not yet sent any instruction about the implementation of the tax.
An official from low cost Jetstar Pacific said the airline will apply current price list while waiting for new list in which it will suffer 5 per cent of VAT for passengers.
The airline said it is setting up a new list basing on the Decree No 103 issued by Ministries of Finance and Transport, adding that ceiling airfare for domestic flights will be higher than VND1.7 million level.
National flag carrier, Vietnam Airlines also promised to keep airfare unchanged during this traditional Tet festival and until March despite new decision of the Finance Ministry.
But the airfare is forecast to surpass VND1.7 million to around VND2 million and VND2.5 million in 2009. (Vnexpress)