CAAV proposes tax cuts and financial support for airlines

The Civil Aviation Authority of Vietnam (CAAV) has proposed several measures to support the aviation industry amid rising fuel prices and geopolitical challenges. These include exempting the environmental protection tax on aviation fuel until May, reducing VAT on aviation fuel, allowing airlines to impose a fuel surcharge, and potentially adjusting domestic air route price caps. CAAV also suggested cutting aviation service fees by 50% and urged discussions with countries restricting fuel exports to secure supply. Additionally, it recommended that the Ministry of Finance explore tax support mechanisms and that domestic refineries maximize Jet A-1 production.