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The Tax Rate on Circulation of Goods and Services (ICMS) on Aviation Fuel Will Be Reduced from 13.3% to 12%, According to the Decree Signed by the Governor of São Paulo State, Tarcísio de Freitas. This Was Freitas’ First Measure Upon Returning from Brasília at the Meeting Supporting Governors for Institutions Due to Last Sunday’s Antidemocratic Acts (8). The Reduction Is Expected to Last Until the End of 2024.
The reduction is a relief for air transportation in the largest capital in the country. When the Covid-19 pandemic hit, the rate could not be maintained at 25%; it fell to 12%, and in 2021 rose to the level prior to the decree signed on January 10. According to the Brazilian Association of Airlines (ABEAR), with the reductions in 2020 and 2021, seven hundred new weekly flights were created in São Paulo.
In addition to being a relief, the measure also stimulates the growth of the sector. With the reduction of the ICMS rate on aviation kerosene, there is potential for the creation of one hundred and fifty new flights in São Paulo. The measure was ratified by representatives of ABEAR and its associates. With the expansion of the air network, more people will have more possibilities for boarding and deboarding in the state.
Present at the decree signing event, besides Governor Tarcísio de Freitas, and ABEAR and its associates, represented by its president, Eduardo Sanovicz, were the Secretary Chief of the Civil House of São Paulo, Arthur Lima; the State Secretary of Tourism and Travel of São Paulo, Roberto de Lucena; the Secretary of Finance and Planning, Samuel Kinoshita; and the President of the São Paulo Convention & Visitors Bureau, Fernando Guinato, among other authorities.
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The intention of Tarcísio de Freitas is to ensure that those who support the air transportation sector feel the reduction of the tax rate at the ground level. According to the Governor of São Paulo, “we will make every effort to collaborate with the aviation and tourism sector, so that we have more and more movements, more and more seat availability. And, ultimately, this increase in seat availability, in addition to contributing to connectivity, is what will lead to a reduction in fares,” declared Tarcísio.
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