Proposed tax changes raise aviation costs
The reform would introduce changes to Brazil’s consumption tax system, affecting the aviation sector. Industry representatives have warned that the higher tax burden could increase ticket prices for domestic and international passengers.
Meanwhile, the International Air Transport Association (IATA) has assessed the potential impact on airfares and passenger demand. Its estimates indicate that the proposed changes could significantly increase travel costs.
IATA forecasts higher fares and lower passenger traffic
According to IATA, the reform could increase domestic airfares by 16.1% and international fares by 13.3%. The association also projects a potential 21% annual decline in passenger traffic. This decline could amount to approximately 25 million fewer passengers per year. The projections highlight the potential impact of the proposed tax changes on Brazil’s air transport market.
Industry calls for adjustments before implementation
IATA has called for the government to delay implementation or introduce a lower tax rate for aviation. The association’s position reflects concerns about the potential effects on ticket prices and passenger volumes.
The debate is taking place ahead of Brazil’s presidential runoff, scheduled for 25 October. The proposed reform is due to begin in 2027, although the aviation industry continues to seek changes to its application.
