Speaking to the press this afternoon, a representative of the Civil Aviation Authority of Vietnam said that high airfares are not due to high aviation service prices.
The Ministry of Finance said that high ticket prices are not due to taxes, but the Civil Aviation Authority refuted this.
Accordingly, the cost structure of a flight consists of 4 factors. First, aviation fuel (37 - 42%). Of which, tax costs regulated by the Ministry of Finance account for 7.7 - 8.7% of the total cost of a flight.
Second, the cost of leasing and repairing aircraft accounts for 32-41%. Third, the cost of flight services accounts for 6-7%, including services priced by the Ministry of Transport and services decided by the enterprise. Fourth, the cost of sales, management, and other costs (16-19%)... are managed by the enterprise.
"Thus, state agencies can regulate and reduce flight costs by reducing related costs. Specifically, it is possible to reduce fuel import tax, environmental protection tax, and VAT (currently accounting for 7.7 - 8.7% of the total cost of a flight. The service cost portion priced by the Ministry of Transport has a small impact," said a representative of the Civil Aviation Authority.
Why do customers still feel that airfares are sky-high?
In addition, since foreign currency-related costs account for about 80% of the cost of a flight, it is recommended that competent authorities take appropriate measures to manage exchange rates.
Specifically, the types of fees passengers must pay for a basic economy class domestic flight ticket:
Taxes managed by the Ministry of Finance include: import tax on aviation fuel (accounting for 2.3 - 2.6% of total cost of a flight) with a collection rate of 7%.
Environmental protection tax on aviation fuel (accounting for 2 - 2.3% of total cost of a flight. The collection rate of 1,000 VND/liter is applied until the end of 2024 (enjoying tax reduction policy).
VAT on aviation fuel (accounting for 3.4 - 3.8% of total cost of a flight) is refunded by the airline at 10%.
Services regulated by the Ministry of Transport include: flight operations (collected by VATM). Aircraft take-off/landing services (collected by port enterprises). Aircraft parking lot rental services (collected by port enterprises). Passenger check-in counter rental services. Passenger boarding and disembarkation bridge rental services. Full-package ground technical commercial services. Automatic baggage sorting services. Aviation fuel filling services. Underground fuel filling system services to supply fuel, etc.
In addition, the fees collected on behalf of enterprises providing passenger terminal services and security services, including 60,000 - 100,000 VND (including VAT) for passenger services and 20,000 VND for passenger and luggage security...
Previously, speaking to the press on the sidelines of the National Assembly on the morning of May 23, when asked about solutions to reduce taxes and fees to cool down airfares, Finance Minister Ho Duc Phoc said: "How many cents are taxes and fees in airfares? If we say taxes and fees are a lot, how much is that?"
Sir, it is necessary to understand that the fees that people are talking about that account for a high proportion of ticket prices are service fees such as airport parking fees, aircraft fees... collected by the Vietnam Airports Corporation (ACV), which is managed by the Ministry of Transport.
The Minister of Finance said that Vietnam has implemented a policy of tax exemption, reduction, and deferral for the past 4 years, spending 200,000 billion VND a year, which is "a relief to the people". If we think about reducing taxes and fees for everything, it will be very difficult.
Source: https://thanhnien.vn/cuc-hang-khong-phan-phao-bo-tai-chinh-ve-may-bay-cao-khong-do-gia-dich-vu-185240523192323709.htm
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