Friday, November 18, 2011

Owner requests tax break to be applied to imported aircraft (Hanoi, Vietnam)

HA NOI — The Ha Noi-based Hanh Tinh Xanh Company (Green Planet) has requested that an import tax of zero, alongside a special consumption tax break, be applied for four light private jets imported for educational, training and commercial purposes.

The private jets, which arrived in Hai Phong Port by sea at the end of last month, include two airplanes A600 Talon, Rotorway, from the USA and two other ATEC 321 and Faeta, from the Czech Republic.

According to the existing regulations, each jet would be levied a special consumption tax rate of 30 per cent and a value-added-tax (VAT) rate of 10 per cent.

In fact, two private jets imported by the groups Hoang Anh Gia Lai and Hoa Phat in 2008 and 2010, respectively, were given a special consumption tax rate of 30 per cent and a VAT rate at 10 per cent.

However, Cao Van Son, chairman of Hanh Tinh Xanh Company's board of directors, said that so far, all imported airplanes for commercial purposes by Vietnam Airlines or Air Mekong had been permitted to receive an import tax rate of zero.

At the moment, the four light private jets are still in Hai Phong Port's warehouse awaiting customs clearance.

Because the importation of these four private airplanes was the first case of its kind, the General Department of Customs consulted the Civil Aviation Administration of Viet Nam to impose the right taxes.

Phung Quoc Hien, chairman of the National Assembly Committee on Economy and Budget, told Dan Tri online newspapers that a special consumption tax rate of 30 per cent was levied on luxury items, such as private airplanes and yachts, in order to discourage individual possession of those high-end commodities.

However, he said several cases would be allowed a tax break if the import of such items served commercial purposes, including passenger transportation, tourism, services or production. — VNS

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