Aviation
Commercial /
Brazil
Change in rate
ABEAR and IATA request neutrality in the tax burden for the aviation sector
Iwan Shimko/Unsplash
Gabriela Ramos
9/24/2021
In view of the Bill establishing the Social Contribution on Operations with Goods and Services (CBS) and which is part of the Tax Reform project in Brazil, last Tuesday, September 21, the Brazilian Association of Airline Companies (ABEAR) and the International Air Transport Association (IATA) asked Deputy Luiz Carlos Motta (PSL-SP), rapporteur of Bill 3787/2020, that the PIS/COFINS rate on the air sector not be changed.
A joint technical note was delivered by the entities to the deputy suggesting adjustments to the project, warning that the proposed rate for CBS could lead to a tax increase of around R$750 million to R$1.8 billion per year for each airline. The proposed rate is around 12% for PIS/COFINS. Currently, the sector pays 3.65% of PIS/COFINS on aviation fuel on domestic flights, while for international flights this tax is not charged.
Last Wednesday, 22, ABEAR, represented by its president, Eduardo Sanovicz, and the rapporteur of the Tax Reform Bill (PL 2.337/2) in the senate, senator Angelo Coronel (PSD-BA), met to maintain the text initially approved by the Chamber, which maintains alignment with good international practices, without increasing the tax burden. Also present at the meeting were the president of the VOEPASS member, José Luiz Felício Filho, and the executive director of the company, Eduardo Busch.
During the meeting, VOEPASS presented its project to expand its regional air network in Bahia for the coming months and discussed with the senator the possibility of creating new routes in the interior of the state. José Luiz Felício Filho stated that “Bahia is one of VOEPASS's bets on the country's economic and tourist recovery. We are confident with the recovery and we should close the year with more than 40 destinations served in Brazil”.
Kirill/Unsplash
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Gabriela Ramos
Gabriela is the latest addition to the editorial team of our website, having provided us with her solid background in editing, publishing and photography, and her interest and training in aviation history and historiography. His good taste and common sense and great cleverness and sagacity in the selection of themes and materials greatly enriched our vocabulary and narrative style. Gabriela brought unusual predicates and came to stay, helping to point the way of success of our portal.
   
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