Aviation
Commercial /
Brazil
breathe
Government of Rio de Janeiro announces reduction of state tax on aviation kerosene to 7%
Abastecimento de avião
Por David Monniaux - Copyright © 2005 David Monniaux, CC BY-SA 3.0, via Wikimedia Commons
Rafael Ramos
9/8/2021
Overall, airlines still use a lot of aviation kerosene. About 35% of the companies' spending is due to the use of kerosene. The government of the state of Rio de Janeiro published a decree, on September 3, reducing the ICMS (Circulation Tax on Goods and Services) from 13% to 7%. The measure is in The companies that will benefit will be those that operate in HUBs and airports in the interior of Rio de Janeiro.
The intention of putting this measure into practice is to attract more airlines and encourage more routes in the region. The budget impact study carried out by the State Government says that up to 64 million reais could be collected by 2023.
“Our objective with the measure is to make Rio de Janeiro increasingly competitive in relation to other Brazilian states so that there is an increase in air flow and the number of tourists. We opened a dialogue with the aviation sector and, strategically, the state government responded to a request from the segment. The work of resuming the economy of Rio de Janeiro has been carried out on several fronts and tourism is a fundamental part of this process”, says Governor Claudio Castro.
Furthermore, the Secretary of State for Tourism, Gustavo Tutuca, says that the fiscal conditions in Rio de Janeiro should be on a par with those in Brazil. “The reduction of ICMS on aviation kerosene has always been a request from the sector. This amount represents about 35% of the expenses of an airline and with this drop, we hope that Rio will become even more competitive in relation to other states in the country, increasing the air flow and, consequently, the number of tourists.”
Ken Yam/Unsplah
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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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