IATA, along with other air transport associations in Brazil, presented on Monday (Aug 9) a manifesto expressing our great concern with respect to Bill 2337/21, as it threatens the sector’s ability to recover after 2022. If passed, the bill will increase the tax burden for the airline industry by revoking tax regimes that currently align Brazil with the international marketplace. These regimes cover the importation of aircraft and parts not available domestically and are essential for the regular maintenance of fleets used in air transport. Taking into account general aviation and other members of the transportation chain, the additional costs for the sector will be approximately R$ 5 billion per year.
IATA and other aviation entities support the tax reform as a whole, as its main objective is to simplify Brazil’s complex and costly tax system, generating positive benefits to all economic sectors. However, there needs to be a broader discussion that instills order, predictability, and transparency and accounts for the financial reality and the needed transition between tax systems. This will allow for budgetary certainty for companies in addition to tax burden neutrality.
The entities propose a greater discussion regarding the project and possible solutions that could make it more feasible, so as not to penalize an operating sector that strategically contributes to the social and economic development of Brazil.
Read the full manifesto here