The Department of Aviation has stated that the service fees determined by the Ministry of Transport have only a minor impact on air ticket prices. According to the Minister of Finance, taxes and fees managed by the Ministry of Finance make up a small percentage of air ticket prices, while service fees managed by the transportation industry have a larger influence on ticket costs.
The Civil Aviation Authority has revealed that the Ministry of Transport only regulates three types of costs related to aviation, which include flight service, airport fees, and security screening. Flight service costs typically make up 6-7% of the total ticket price and cover expenses like take-off/landing fees, airport rental fees, and baggage handling services. Flight fees range from 60,000-100,000 VND, while screening fees amount to 20,000 VND per passenger per trip.
Airlines collect revenue from various sources such as VAT on behalf of the State budget and taxes on aviation fuel and environmental protection tax on fuel. However, they emphasize that they have no control over the taxes and fees set by the government and can only reduce operating costs to lower ticket prices. Airlines propose adjustments such as reducing flight operating and landing fees, aviation fuel import fees, exemptions for night flight surcharges, reducing fuel import tax, environmental protection tax, and VAT to lower flight operating costs. The Civil Aviation Authority highlights regulating exchange rates to align with market developments as many airline expenses are paid in USD is crucial.
The Minister of Finance mentioned 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 in support of various industries during the pandemic reduced certain taxes
