The Hanoitimes - Deputy Prime Minister Vuong Dinh Hue approved the Ministry of Finance`s proposal to exempt tax on goods imported into Vietnam by Emirates Airlines, said the government portal on May 5.
The Deputy PM assigns the Ministry of Finance to implement the proposal and direct customs agencies to closely monitor and manage import and use of duty-free goods of the airline to ensure they are used for right purposes as regulated at Article 6 of the Agreement on Air Transport, signed between the Governments of Viet Nam and the United Arab Emirates.
Emirates is an airline based in Dubai, United Arab Emirates. The airline is a subsidiary of The Emirates Group, which is wholly owned by the government of Dubai's Investment Corporation of Dubai
Emirates Airline is the fifth airline received import tax exemption.
It is the largest airline in the Middle East, operating over 3,600 flights per week from its hub at Dubai International Airport, to more than 140 cities in 81 countries across six continent.
Emirates is the world's fourth largest airline by scheduled revenue passenger-kilometers flown, the fourth-largest in terms of international passengers carried, and the second-largest in terms of freight tonne kilometers flown.
It is the 5th airline to receive import tax exemption. Previously, the Deputy PM agreed to exempt tax on imported goods of Hong Kong Dragon, Cathay Pacific Airways, Federal Express Corporation and Japan Airlines, in line with international treaties.
Vietnam`s import-export duty revenue in the first quarter of 2018 reached VND67.4 trillion (US$2.9 billion), down 3.06% compared to the corresponding period of last year, according to the General Department of Vietnam Customs (GDVC).
Consequently, in the first 3 months of 2018, Vienam's trade turnover is estimated at US$107.32 billion, increasing 17.7% compared to the same period of last year. Specifically, export turnover accounted for US$54.31 billion, increasing 22% and import turnover of US$53 billion, up 13.6% year on year.
In 2018, GDVC set revenue target of VND283 trillion (US$12.4 billion), while the Ministry of Finance Dinh Tien Dung expected the actual revenue to be at least 3 - 5% higher.