Saturday, June 21, 2008

Vietnam to scrap fuel import tax for airlines

HANOI, June 21 (Xinhua) -- Vietnamese Ministry of Finance has decided to remove import tax levied on aviation fuel to help domestic carriers reduce losses on rising international fuel prices, Vietnam News reported here Saturday.

The tax rate reduction will be effective early next month.

The fuel price, which has gone up about 80 percent so far this year, is an important factor affecting airline's total revenue, said experts here.

Fuel now accounts for 55 to 60 percent of the total cost of flights for domestic carriers, including Vietnam Airlines and Jetstar Pacific.

The ministry cut the import tax rate for aviation fuel from 10 percent to 5 percent four weeks ago.

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