Regarding the recent increase in airfares due to the burden of too many taxes and fees, on May 4, the Ministry of Finance said that the fees are "service prices" for the aviation industry according to regulations of the Ministry of Transport; they are not fees belonging to the State budget according to the Law on Fees and Charges.
One of the reasons for the excessive increase in airfares is that the current tax and fee levels are not small, as airlines have to bear over 20 types of fees, both direct and indirect.
The representative of the Department of Tax, Fee and Charge Policy Supervision and Management (Ministry of Finance) said that the above fees are "service prices" for the aviation sector stipulated in Circular No. 53/2019/TT-BGTVT dated December 31, 2019 of the Ministry of Transport regulating prices and price ranges for some aviation services at Vietnamese airports; they are not state budget fees as stipulated in the Law on Fees and Charges.
According to the law on fees and charges, for Vietnamese flights landing or taking off at domestic airports, only the airport and airport concession fee must be paid at the rate of: VND 165,000/flight/flight operation assurance service and VND 335,000/flight/airport business service.
For more information on this content, the representative of the Price Management Department said that in Clause 2, Article 9 of Law No. 66/2006/QH11 on civil aviation and Clause 3, Article 1 of the Law on Civil Aviation of Vietnam No. 61/2014/QH13 dated November 21, 2014, the Ministry of Transport is responsible to the Government for performing state management of civil aviation; airlines decide on domestic air transport service prices within the prescribed price range and declare prices to the Ministry of Transport.
According to its authority, the Ministry of Transport has issued Circular No. 53 and received price declarations for the field of aviation specialized service prices in the list of state-regulated price frames; domestic air passenger transport service prices are set by the Ministry of Transport with maximum prices...
Regarding air transport service fares, under its authority, the Ministry of Transport issued Circular No. 34/2023/TT-BGTVT dated November 30, 2023 (effective from March 1, 2024) amending and supplementing a number of articles of Circular No. 17/2019/TT-BGTVT dated May 3, 2019 promulgating the air transport service fare frame on domestic routes.
Thus, the Ministry of Finance affirms that state management of prices and promulgation of regulations on prices of specialized aviation services; prices of domestic air passenger transport services are under the authority of the Ministry of Transport.
NH (according to VietnamPlus)Source
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