Aviation
Commercial /
Brazil
Tax reform
Bill 2337/21, which changes income tax, would harm the aviation sector and delay resumption
Ken Yam/Unsplah
Rafael Ramos
8/10/2021
The Brazilian Association of Airline Companies (Abear), along with eight other entities in the airline industry, estimated that the proposed changes in Bill 2337/21 would generate an additional cost of 5 billion reais per year by proposing the end of the PIS exemption /Cofins and import tax for aircraft parts and parts, 3 billion in commercial aviation and 2 billion in other areas.
"If by itself the resumption of these taxes would have a strong impact on the airline industry, promoting them in this scenario of fragility of commercial aviation and the soaring of the dollar, when 50% of regular transport costs are dollarized, is disproportionate to an economic activity of this importance", the manifesto reads.
"The bill ends these two historic exemptions [PIS/Cofins and import tax for aircraft parts and parts], which must be more than 30 years old, and goes against Brazil's reinsertion on the path to recovery", said the president of Abear, Eduardo Sanovicz.These two taxes are not levied on the foreign market and would cause more difficulties for companies in Brazil, since operating costs here are already high.
The entities released a manifesto, on Monday, showing concern about this. According to Abear, the changes threaten the sector's ability to rebound from 2022. The reduction of the IRPJ (Corporate Income Tax) on profit will not offset the negative effects of the Bill, since in the current economic context aviation is not operating profitably. As for the import of aircraft parts and parts, the manifest says that there are no similar nationals.
Some entities linked to the aviation sector should meet to debate this issue with the government. The president of Abear, in turn, says that he has already been in dialogue with the government to discuss the issue.
Abear and other entities are in favor of tax reform, but the discussion so that everyone can contribute and benefit is necessary. The entities list in the manifesto contributions to the construction of this theme.
The entities that signed the manifesto are Abear itself, the Latin American and Caribbean Air Transport Association (ALTA), the International Air Transport Association (IATA), the Board of Representatives of International Airlines in the Brazil (JURCAIB), the Brazilian Association of General Aviation (ABAG), the Brazilian Association of Auxiliary Services to Air Transport (ABESATA), the National Union of Airline Companies (SNEA), the National Union of Air Taxi Companies (SNETA) ) and the National Union of Agricultural Aviation Companies (SINDAG).
Josue Isai Ramos Figueroa
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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