São Paulo – The São Paulo state’s government announced on this Tuesday (5) a reduction on the Tax on Circulation of Goods and Services (ICMS, acronym in Portuguese) aliquot on aviation fuel. The percentual will be reduced from 25% to 12%. With this change, the revenue expected for 2019 on the circulation of aviation kerosene will be reduced from BRL 627 million (USD 171 million) to BRL 422 million (BRL 115 million). The measure intends to reduce the operational cost of air companies. Representatives of airlines Latam, Gol, Azul and Avianca were present at the announcement.
In return, the sector promised to create 490 weekly take-offs in 70 new flights to 21 states within 180 days. Among the new regular flights, six will attend only destinations in São Paulo.
The government’s expectation is that the air network and the passengers flow in São Paulo will amplify not only in the state capital but in all regions of the state. São Paulo concentrates 44% of the civil aviation market of Brazil, according to the National Civil Aviation Agency of Brazil (ANAC, acronym in Portuguese).
Another compensatory measure by the companies is the implementation of the stopover, which means the passengers may spend some time in a connecting city without having to buy a new ticket.
Translated by Guilherme Miranda
