Kingfisher in more trouble

NEW DELHI, 21 December 2011: Troubled Indian carrier Kingfisher Airlines has flown into fresh turbulence by failing to deposit 1.54 billion rupees (US$29.3 million) in tax deducted from its staff, a junior minister said Tuesday.

Minister of State for Finance S.S. Palanimanickam told parliament that the amount comprised most of the tax deducted from employees’ salaries over the past two fiscal years.

“Proceedings have been initiated… to crystallise the default amount, levy interest on delayed payment and take further statutory action,” he said in a written statement to the upper house. Read more

Vietnam to test VAT refund scheme

HO CHI MINH CITY, 20 September 2011 – Vietnam will pilot a value-added tax refunds scheme for international tourists April 2012, based on Ministry of Finance detailing the refund procedures.

Local newspaper reported last week that the scheme had gained approval from Vietnam’s Prime Minister, Nguyen Tan Dung.

But the devil is in the details and that will require the Ministry of Finance to work out criteria and the scope of the refund, as well as appointing an agency to refund the tax at airports. Read more

EU stands firm on pollution tax

BRUSSELS, 27 June 2011 – The EU refused Saturday to back down on a planned pollution tax on airline companies after reports China has put an Airbus order on ice and growing discontent in the United States.

Expectations that Hong Kong Airlines would announce a contract to buy billions of euros worth of Airbus aircraft failed to materialise this week at the Paris air show, prompting fears Beijing may have blocked the order.

A source close to the matter who asked not to be identified told AFP he was aware of “the possibility that China could put the deal on ice.” Read more

Venice accommodation tax postponed

LONDON, 23 June 2011 – A move to introduce an accommodation tax on travellers staying in Venice was postponed, Wednesday, amidst banner waving protests led by residents who claimed the tax would ultimately add  to their own tax burden.

It is now unlikely that the tax can be approved until 23 August.

Local hotel associations also opposed the tax claiming tourism management in the city was a delicate balancing act.

The proposed tax is very similar to Florence’s (one euro, per star, per person, per night).

“This is an interesting development, even surprising, given that initially this vote was seen as a formality,” said Nick Greenfield, Head of Tour Operator Relations at ETOA, Read more

Movie makers get a tax break

BANGKOK, 21 April 2011 – The Thai  Cabinet has approved the Finance Ministry’s new tax incentives for foreign actors and international film makers to attract more film productions to the country.

The new tax incentives include exemption of income tax for foreign film companies and foreign actors who work in Thailand on foreign films.

The new proposal aims to attract more investment from international movie makers and enhance Thailand’s capacity to compete with other Asian countries in this specialised market.

Read more

Vietnam trade hit by rising costs

Ho Chi Minh City, 30 March 2011 – HCMC Tourism Association has filed a petition urging government agencies to offer tax incentives and easier operational conditions for travel entrepreneurs as travel and hotel prices throughout the country escalate.

HCMC Tourism Association vice chairwoman, Nguyen Thi Khanh, told Saigon Times, Tuesday, that the association, which represents over 124 travel firms, hotels and other companies, has asked for a 50% reduction in value added tax (VAT) and a 30% reduction of corporate income tax. Enterprises also want to pay the tax two quarters later than normal.

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Cambodia up to speed on airport tax

PHNOM PENH, 8 March 2011 – Cambodia’s airport tax will be included in airfares at the point of purchase, effective 1 April, for travel from all of its international airports.

It will save time for passengers who have to queue at kiosks to pay the US$25 airport tax, after checking in at airline counters.

Cambodia adopts the unusual practice of dual pricing on its airport tax. Cambodians pay US$18 to use  airport facilities.

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US travel tax under attack

MONTREAL, 21 February 2011 – The International Civil Aviation Organisation on Thursday criticized Washington over a budget proposal to charge travelers a US$5.50 fee for entering the United States by air or sea.

Raymond Benjamin, secretary general of the UN aviation watchdog based in Montreal, told AFP the new fee would be “bad” for aviation.

He also decried a “strong tendency” by governments worldwide of targeting the airline industry to raise monies whenever they are short of revenues.

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German tax under fire

BANGKOK, 20 December 2010 – World Travel and Tourism Council has warned Germany that a new air passenger tax could injure the country’s outbound tourism industry negating any benefits the tax might deliver, the organisation stated Sunday.

The new air passenger tax will be apply for all airline departures from Germany, 1 January 2011. Air Berlin and Ryanair have both indicated they will cut capacity and services from the country next summer. The tax aims to raise EU1 billion annually. The taxes are EU8, EU25 and EU45 for short-haul, mid-range and long-haul trips.

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Lao travel tax extends to neighbours

BANGKOK, 8 December 2010 – A surprise decision by Laos to introduce a US$2 travel tax on foreign visitors also extends to a US$1 levy on border pass travellers, mainly rural traders who cross the border daily to sell agricultural goods in Laos.

The inclusion of border pass travellers in the travel tax was confirmed by a LTMB statement posted on the TTR Weekly’s website Tuesday.

The travel tax has been approved as a revenue earning component of the recently formed Laos Tourism Marketing Board. According to  LTMB legislation, the tax would be used to fund overseas promotions to drive more tourists to the land-locked country. Read more

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