Private aircraft to be used for 'defense training', likely to be untaxed

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A local company has proposed its four recently imported private aircrafts be exempt from all taxes, given that they were meant to be used for defense training, VnExpress reported on Thursday.

According to the newswire, Hanh Tinh Xanh (Green planet) Co.'s aircraft, which were brought into Vietnam late last month by sea, are subject to the 10 percent value added tax and the 30 percent special consumption tax.

Each of the two-seat aircraft costs some US$150,000, the company said.

However, Cao Van Son, chairman of the company, said he has asked local agencies exempt the vehicles from the taxes, as well as from the import tax, because the aircraft will be used in defense training.

A report on newswire Dan Tri last Friday said the aircraft will be provided to the Northern Aviation Club under the Ministry of Defense for its project to promote aviation knowledge for defense purposes.

The company's support has been recognized by the ministry, and it is now an official member of the club, Dan Tri said.

The aircraft -- two flat wing planes made by Czech manufacturer ATEC, and two helicopters from the United States' Rotoway -- will have customs clearance completed at the northern city of Hai Phong's port at the end of the month, Son said.

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Vietnam has at least two private aircraft. One belongs to Doan Nguyen Duc, one of the country's richest men and owner of Vietnam's second-largest listed real estate firm, Hoang Anh Gia Lai. The other belongs to Tran Dinh Long, who owns Hoa Phat Group, Vietnam's largest steel producer.

Taxes were imposed on both of the airplanes.

Meanwhile, aircraft imported by airliners such as Vietnam Airlines and Air Mekong for commercial purposes are exempt from the import tax, VnExpress reported.

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