Tax reform: airlines want to avoid higher fares – 07/24/2023 – Panel SA

Airlines were not classified like other modes of transport in the Tax Reform proposal and, if it is not possible to reverse this situation, the sector’s costs will triple, leading to an increase in ticket prices.

In conversations with parliamentarians, Latam, Gol and Azul, in particular, claim that there is no way for the sector to afford a full rate when the other modes of transport obtained 60% discounts on the rate resulting from the combination of CBS (federal taxes) and IBS (ICMS and ISS).

Preliminary calculations by the sector indicated, without neutrality, revenue would increase by 274%. Per company, it would be up to R$ 3.7 billion in additional taxes per year.

With the latest changes to the text, Abear, the association that represents companies in the sector, is preparing a new study in time to support the next round of conversations in the Senate.

The rapporteur for the reform in the Senate, Eduardo Braga (MDB-AM), said that he would only receive the sectors from the 15th of August. He wants to better study the text approved by the Chamber to assess the impacts caused by it.

“At a time when we want to democratize [o acesso] we cannot increase the tax burden under the risk of having a large long-term loss with a decrease in the companies’ operations, fleet renewal, hiring of employees and expansion of the operation as a whole”, says Jurema Monteiro, president of Abear.

With Diego Felix

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