Tax reform could increase plane tickets by 23%
The annual meeting of IATA (International Air Transport Association), held in Rio de Janeiro, brought a worrying warning to Brazilian passengers: air tickets could become even more expensive. Two typically Brazilian factors were identified as responsible for the possible increase in prices.
The main factor of concern is the tax reform approved by the National Congress. On Agora CNN, Fernando Nakagawa, who followed the event, the airline sector states that the reform, as approved, should generate a significant increase in ticket prices.
The new tax, VAT, should be between 26% and 27%, which, according to companies in the sector, will directly impact the costs passed on to passengers.
The numbers presented by IATA in Rio de Janeiro are significant. On average, a domestic trip that currently costs R$650 should rise by 23%, reaching R$800 each way. International flights are expected to register an even greater increase, of 26%, increasing the average value from US$740 to around US$935 - the equivalent of R$4,675.
The Ministry of Finance, however, denies that the impact is of this magnitude, arguing that the airline sector is ignoring the possibility of taking advantage of tax credits on purchases made by companies.
"The fact is that confusion is in place, debate is in place and airlines are complaining about tax reform," said Nakagawa.
Volume of lawsuits also puts pressure on prices
In addition to tax reform, another national problem was highlighted during the meeting: the high number of lawsuits filed by passengers against airlines.
According to IATA, in Brazil there is one case in court for every 227 passengers who traveled by plane. In the United States, this number is just one case for every 1.2 million passengers.
This volume of legal actions, according to the entity, means that Brazilian tickets cost between 3% and 5% more than they should, just to cover expenses that exceed R$1 billion per year with lawyers and courts.
Nakagawa reported having spoken to John Rodgerson, CEO of Azul Linhas Aéreas, who explained that, despite some initiatives from the Justice and ANAC, the problem is getting worse - including the use of artificial intelligence as a factor in accelerating demands. "This impacts all Brazilians who are paying this bill," said Rogerson.
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Source: CNN