{"id":100160,"date":"2026-09-30T16:42:42","date_gmt":"2026-09-30T19:42:42","guid":{"rendered":"https:\/\/murray.adv.br\/?p=100160"},"modified":"2026-09-30T16:42:42","modified_gmt":"2026-09-30T19:42:42","slug":"airlines-step-up-push-to-mitigate-brazil-tax-reform-impact","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/airlines-step-up-push-to-mitigate-brazil-tax-reform-impact\/","title":{"rendered":"Airlines step up push to mitigate Brazil tax reform impact"},"content":{"rendered":"<section class=\"content--header\">\n<div class=\"row content-head non-featured \">\n<div class=\"medium-centered subtitle\">\n<h6 class=\"content-head__subtitle\" style=\"text-align: center\">International aviation industry seeks changes to new tax rules, warning higher ticket prices could cut international passenger demand by 17.8%<\/h6>\n<\/div>\n<\/div>\n<div class=\"content__signa-share\">\n<div class=\"content__signature\">\n<div class=\"content-publication-data\">\n<div class=\"content-publication-data__text\">\n<div class=\"content-publication-data__from\"><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"content-publication-data__updated\"><time datetime=\"2026-09-30T07:17:10.637-03:00\">09\/30\/2026\u00a0<\/time><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content__share-bar-container\"><\/div>\n<\/div>\n<\/section>\n<div id=\"mc-article-body\" class=\"mc-article-body ready cropped\">\n<article>\n<div class=\"no-paywall\">\n<div class=\"row medium-uncollapsed content-media content-photo\" data-block-type=\"backstage-photo\" data-block-id=\"0\">\n<div class=\"mc-column content-media__container\" data-image-display=\"normal\">\n<div class=\"content-media-container\" style=\"text-align: center\">\n<figure class=\"content-media__figure\"><img loading=\"lazy\" decoding=\"async\" class=\"content-media__image aligncenter\" src=\"https:\/\/s2-valorinternational.glbimg.com\/zqEEqhy5nogky0OT51g--hRxda8=\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_63b422c2caee4269b8b34177e8876b93\/internal_photos\/bs\/2026\/X\/j\/glfh9kQrW1zllAxNu0Aw\/foto30emp-101-reforma-b1.jpg\" alt=\"Daniel Longo, head of National Civil Aviation Secretariat (SAC) \u2014 Foto: Vosmar Rosa\/Divulga\u00e7\u00e3o\" width=\"528\" height=\"444\" \/><figcaption class=\"content-media__description\"><em>Daniel Longo, head of National Civil Aviation Secretariat (SAC) \u2014 Photo: Vosmar Rosa\/Divulga\u00e7\u00e3o<\/em><\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"mc-column mc-side-item__container\" data-block-type=\"ads\" data-block-id=\"1\"><\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"58\" data-block-id=\"2\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">The international aviation industry has stepped up efforts in recent months to find ways to mitigate the impact of Brazil\u2019s tax reform. The effort has received support from the <strong>Ministry of Ports and Airports<\/strong>, which has submitted a draft proposal with recommendations to the <strong>Finance Ministry<\/strong> and the Management Committee of the Tax on Goods and Services (CGIBS).<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"50\" data-block-id=\"3\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">International airfares, which are currently tax-exempt, will be subject to half the standard rate under the new system, estimated at 26%. On domestic flights, the current rate of around 9% will rise to the full rate. The industry has been seeking an alternative for some time, so far without success.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"60\" data-block-id=\"5\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Behind the scenes, sources say there is an expectation that parts of the tax reform could be postponed until after the election. That is because several sectors are facing major disagreements over the new rules. Airlines, meanwhile, have already begun selling tickets for the first months of next year without knowing exactly what tax rate they will have to pay.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"37\" data-block-id=\"6\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">According to the <strong>International Air Transport Association (IATA)<\/strong>, if the reform takes effect as currently drafted, it would increase international airfares by 13.3%. That could reduce demand by 17.8%, equivalent to 5 million fewer passengers a year.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"30\" data-block-id=\"7\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">The <strong>National Civil Aviation Secretariat (SAC)<\/strong>, part of the Ministry of Ports and Airports, prepared the recommendations sent to the Finance Ministry in an effort to find an alternative approach.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"54\" data-block-id=\"8\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">One proposal calls for a zero tax rate, based on the principle of reciprocity between countries. \u201cInternational air transportation is governed by international agreements. And the vast majority of those countries, with a few exceptions, do not impose any type of tax on international air transportation services,\u201d said <strong>Daniel Longo<\/strong>, head of the SAC.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"50\" data-block-id=\"9\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">The ministry proposed a special tax regime to the Finance Ministry, a model supported by provisions in the supplementary laws governing the tax reform. The proposals were submitted in August, but there has been no response so far. The Ministry of Finance did not respond to a request for comment.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"48\" data-block-id=\"10\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Longo said the prospect of imposing a tax on international aviation is a concern for the ministry, particularly as tourism continues to grow. \u201cLast year, we set a record for the number of tourists visiting Brazil. If we start adding costs, we could be reducing demand,\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"70\" data-block-id=\"12\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Another recommendation to the Finance Ministry, Longo said, involves regulations that would prioritize air operations with little or no environmental impact. Such operations would be exempt from the excise, known as the \u201csin tax,\u201d which was created to impose higher taxes on activities that have negative effects on society or the environment. The tax also applies to aircraft and vessels, as well as products such as alcoholic and sugary drinks.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"44\" data-block-id=\"13\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Chris Sununu, chairman and CEO of Airlines for America (A4A), expressed support for the SAC\u2019s proposal for a zero VAT rate. \u201cA lower tax burden and greater legal certainty show that Brazil is ready for further growth,\u201d he said in a statement to Valor.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"42\" data-block-id=\"14\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Another issue on the industry\u2019s radar is a change to Brazil\u2019s Electronic Air Transportation Ticket system (BP-eTA), which will begin requiring around 200 fields of passenger information. Today, the system collects only basic information, such as the passenger\u2019s name and identification number.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"44\" data-block-id=\"15\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\"><strong>Peter Cerd\u00e1<\/strong>, IATA\u2019s regional vice president for the Americas, said the industry has submitted to the government a list of 15 to 25 fields that could be provided while complying with personal-data protection requirements under Brazil\u2019s General Data Protection Law (LGPD) and international legislation.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"31\" data-block-id=\"16\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">According to IATA, the requirements currently proposed for BP-eTA would entail a level of detail significantly greater than that required in markets such as Colombia, Peru, Argentina, Spain, Portugal, and France.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"27\" data-block-id=\"17\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">\u201cThe impact is significant, both operationally and in terms of implementation,\u201d said Cerd\u00e1, who is also president of the Latin American and Caribbean Air Transport Association (ALTA).<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"34\" data-block-id=\"18\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Cerd\u00e1 said the association and executives from global airlines met with government representatives in Bras\u00edlia in August. \u201cThe only people we weren\u2019t able to speak with were officials at the Finance Ministry,\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"56\" data-block-id=\"19\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Cerd\u00e1 also said the industry has asked for the new ticketing requirements to be postponed. The rules were originally scheduled to take effect in August but were pushed back to December 1. \u201cWe have 46 airlines operating in Brazil. What they [the government] are asking for is a solution that simply cannot be delivered,\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"39\" data-block-id=\"21\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Juliano Noman, president of ABEAR, said the industry views higher taxes on international airfares as a move that would hurt tourism. Just look at places like Bonito [in Mato Grosso do Sul state] and Jericoacoara [in Cear\u00e1],\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"53\" data-block-id=\"22\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">One airline closely watching the changes is Portugal\u2019s TAP, the international carrier serving the largest number of destinations in Brazil. Carlos Antunes, the airline\u2019s head of the Americas, said TAP has put its Brazilian expansion plans on hold. \u201cThis change will mean many hundreds of thousands of euros in additional costs,\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"51\" data-block-id=\"23\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">The group has no plans to launch new routes in 2027. This year, it added two routes from Curitiba and S\u00e3o Lu\u00eds to Lisbon. TAP currently serves 15 cities in Brazil. The airline carried 2.2 million passengers in Brazil last year and aims to increase that figure by 5% this year.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"54\" data-block-id=\"24\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">CGIBS said it is reviewing thousands of contributions submitted by different sectors of the economy regarding the regulations for the IBS and that its representatives have met with SAC to discuss the aviation industry. \u201cThe committee has not yet taken a position on the proposals submitted, which are still undergoing technical review,\u201d it said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"63\" data-block-id=\"25\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">\u201cRegardless of the merits of the proposals received, it is noteworthy that the committee has regulatory authority only over the IBS and cannot introduce new rules or go beyond what has been established in legislation approved by Congress,\u201d the committee said, adding that expanding special tax regimes for certain sectors would tend to increase the burden borne by other parts of the economy.<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\">*By Cristian Favaro\u00a0\u2014 S\u00e3o Paulo<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\">Source: Valor International<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>International aviation industry seeks changes to new tax rules, warning higher ticket prices could cut international passenger demand by 17.8% &nbsp; &nbsp; &nbsp; &nbsp; 09\/30\/2026\u00a0 Daniel Longo, head of National Civil Aviation Secretariat (SAC) \u2014 Photo: Vosmar Rosa\/Divulga\u00e7\u00e3o The international aviation industry has stepped up efforts in recent months to find ways to mitigate the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[27179],"class_list":["post-100160","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-airlines-step-up-push-to-mitigate-brazil-tax-reform-impact"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - 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