Minister tries to block IOF tax increase for aviation: 'We are working to strengthen the sector,' says Costa Filho.
The Minister of Ports and Airports has scheduled a meeting with the Ministry of Finance to find alternatives to the increase in the IOF tax.
247 - The Minister of Ports and Airports, Silvio Costa Filho, has scheduled a meeting with the Minister of Finance, Fernando Haddad, for next week to discuss the negative effects of the increase in IOF (Tax on Financial Operations) on commercial aviation.
According to the column SA PanelAccording to Folha de S.Paulo, Costa Filho intends to negotiate a solution to prevent the tax increase, which directly affects airlines, and to discuss the impacts of tax reform on the sector. The goal, according to the minister, is to find an alternative that allows for the expansion of air transport in the country without compromising fiscal balance.
Representatives from the aviation industry claim that the plan to incentivize regional aviation is at risk of being interrupted due to the tax increase and the new tax regime. Juliano Noman, president of ABEAR (Brazilian Association of Airline Companies), stated that the IOF (Tax on Financial Operations) affects most of the companies' operational costs, mainly because a large part of these expenses, such as aircraft leases and financing, are made in dollars.
The tax reform, in turn, provides tax benefits only for regional flights, which could lead to a significant reduction in operations. Projections made by the companies indicate that the measures will result in a 6,2% reduction in the supply of domestic flights, which should affect around 5 million passengers.
According to the report, industry representatives argue that recent government decisions contradict commitments made to airlines, such as the release of credit through the National Civil Aviation Fund (FNAC). Silvio Costa Filho has been directly involved in securing these funds and now wants to ensure that tax policy is aligned with the government's efforts to recover and expand aviation in the country.
“We are working to secure a credit agenda for airlines with R$ 4 billion in resources and, alongside the sector, seeking alternatives within the government to further strengthen the country's aviation industry, unlike what happened in the previous government which did not bother to support Brazilian airlines during the most critical moment, which was the Covid-19 pandemic,” stated the minister.
