The Department of Aviation has responded to the Minister of Finance’s statement that service fees managed by the transportation industry have a greater impact on air ticket prices. According to the Civil Aviation Authority, there are only three types of costs regulated by the Ministry of Transport: flight service, airport fees, and security screening. Flight service fees typically make up around 6-7% of the total ticket price and cover expenses like take-off/landing fees, airport rental fees, and baggage handling services. Screening fees amount to 20,000 VND per passenger per trip.
Revenue collected by the Ministry of Finance makes up approximately 7.7-8.7% of the total ticket price, consisting of taxes on aviation fuel, environmental protection tax on fuel, and VAT. Airlines emphasized that they have no control over government-set taxes and fees and can only reduce operating costs to lower ticket prices. Some proposed adjustments include reducing flight operating and landing fees, aviation fuel import fees, and exemptions for night flight surcharges. The Civil Aviation Authority suggested reducing fuel import tax, environmental protection tax, and VAT to lower flight operating costs as well as regulating exchange rates to align with market developments since many airline expenses are paid in USD.
The Minister of Finance noted that many countries aim to increase public resources through higher tax rates and revenue collection. The Vietnamese government has implemented policies to exempt or reduce taxes and fees for various industries during the pandemic as well as defer some payments for certain companies due to decreased flight operations.
