Collecting Opinions about Resolution on Environmental Tax on Jet Fuel

On June 8, 2020, the Ministry of Finance sent a dispatch to collect opinions of ministries and branches on the Resolution of the National Assembly’s Standing Committee on environmental tax on jet fuel.

In response to the Government’s Resolution 84/NQ-CP dated May 29, 2020 on tasks and solutions to remove business hardships, promote public investment disbursement and ensure social order and safety amid the Covid-19 pandemic and assist the aviation industry which has been adversely impacted by the pandemic, the Ministry of Finance studied and drafted a resolution on environmental tax on jet fuels according to streamlined order and procedures.

Under this project, the Ministry of Finance reported to the Prime Minister and submitted to the Standing Committee of the National Assembly for consideration and imposition of environmental tax on jet fuel equal to 70% of the rate specified in Resolution 579/2018/UBTVQH14 dated September 26, 2018 till the end of December 31, 2020. This adoption will make the environmental tax on jet fuel decline by VND900 per liter to VND2,100 per liter, thus reducing the State budget revenue by VND87.33 billion a month. However, this move will help air transport companies to ease financial burdens and maintain business operations in the context of the complicated and unpredictable Covid-19 epidemic in the world.

This resolution will take effect on the date of signing and will be applied until the end of December 31, 2020. From January 1, 2021, the environmental tax on jet fuel will be based on Resolution 579/2018/UBTVQH14 dated September 26, 2018 on the Environmental Protection Tariff.

By Le Hien, Vietnam Business Forum