Vietnam tax authority says Bamboo Air owes $4.2 million in taxes

A Vietnam provincial tax authority is ordering three banks to lock accounts for struggling airline Bamboo Airways JSC because of late tax payments of about 102.6 billion dong ($4.2 million).

The carrier, which last month said it was cutting unpopular routes in a restructuring, is more than 90 days overdue in tax payments, according to a statement on the website for the tax authority of central coastal province of Binh Dinh, where the airline has its headquarters.

“Bamboo Airways has a plan to ensure payment obligations with the province this November,” the company said in an emailed statement. “The recent delay in completing tax obligations was because we were focusing on prioritizing our customers.”

The order goes into affect 30 days from Oct. 24, the tax authority statement said. The tax authority also directed the three banks — Bank for Investment and Development of Vietnam, Military Commercial Joint Stock Bank and Vietnam Technological and Commercial Joint-stock Bank — to recoup the money for the government, according to the statement.