Taxes and fees are very minimal in the price of airline tickets.

Minister of Finance Ho Duc Phoc stated that the percentage of taxes and fees included in airline tickets collected by the Ministry is in accordance with regulations and accounts for a very small portion.

On the morning of May 23rd, during group discussions on the socio-economic situation, National Assembly representatives argued that it is necessary to clarify the reasons for the high ticket prices and find solutions to stabilize them. High ticket prices reduce travel demand and negatively impact employment in the tourism and hotel industries.

Speaking on the sidelines of the National Assembly , Minister of Finance Ho Duc Phoc stated that the percentage of taxes and fees included in airfares collected by his Ministry is in accordance with regulations and accounts for a very small portion.

In fact, according to surveys, taxes and fees collected by airlines account for 10-30% of the total cost of air tickets and have remained almost unchanged over time.

Specifically, airlines collect value-added tax (VAT) on behalf of the State budget, which is managed by the Ministry of Finance. Other fees, such as airport fees and security screening fees, are collected by airlines on behalf of the Vietnam Airports Corporation (ACV), the entity managing and operating over 20 airports nationwide. The security screening fee is fixed at 20,000 VND (including VAT ) per adult passenger and 10,000 VND per child.

Under the purview of the Ministry of Finance, Mr. Phớc stated that only value-added tax (VAT) of 8-10% and corporate income tax are collected from airlines. These amounts account for a small percentage of the airfare.

"How much of the tax and fees are included in the airfare, and how much is considered a lot? We need to understand that the fees people say account for a high proportion of the ticket price are service fees such as aircraft parking fees, airport fees, etc., which are managed by the transportation sector," the head of the finance sector explained.

The Minister of Finance also clarified that taxes and fees constitute the budget. Currently, many countries are seeking to increase public resources through raising tax rates. For example, at the recent APEC Finance Conference, the Finance Ministers of various countries advocated strengthening public finances by increasing taxes to address population aging and disease outbreaks.

In Vietnam, over the past four years, the government has implemented numerous policies to exempt, reduce, and defer taxes and fees, totaling approximately 200 trillion VND per year, to ease the burden on the people.

Regarding airfare prices, the National Assembly's Economic Committee acknowledges that the high airfare prices have a negative impact on domestic tourism growth. This was clearly demonstrated during the recent April 30th - May 1st holiday, when localities benefiting from the highway infrastructure system, such as Thanh Hoa, saw a record increase in visitors, while localities heavily reliant on air travel, such as Phu Quoc, recorded a decrease in domestic tourists.

During group discussions, many National Assembly deputies also expressed concerns about the high increase in airfare, which is affecting tourism and economic recovery.

According to Representative Bui Hoai Son, Standing Member of the State Committee on Culture and Education, it is necessary to clarify the reasons for the high ticket prices and solutions to stabilize them. High ticket prices reduce travel demand and negatively impact employment in the tourism and hotel industries.

Mr. Son compared flight routes of similar length in Thailand and found that ticket prices are cheaper than in Vietnam. For example, from Bangkok to Phuket, nearly 869 km, the ticket price is 768,000 VND with Air Asia, 796,000 VND with Thai JetAir, and 1.16 million VND with Thai Airways. Meanwhile, the Hanoi - Da Nang route, 757 km long, costs 1.12 million VND with VietJet and 1.58 million VND with Vietnam Airlines.

"Our ticket prices are very high compared to Thailand," Mr. Son emphasized.

The reasons pointed out by delegate Son are that Vietnam's aviation industry still lacks competitiveness; aircraft maintenance and repair costs are high; and there is a lack of cooperation between aviation and tourism.

Mr. Son observed that cooperation between the aviation and tourism industries remains fragmented, with each side focusing solely on benefits and failing to share risks. He also suggested a support package for the aviation sector to include discount programs and subsidies for airport services.

Furthermore, the tourism and aviation industries need to cooperate closely, offering promotional products to help reduce airfares. In the long term, Vietnam needs to invest in aircraft maintenance centers and lower service costs in this sector.

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