The governor of São Paulo, Tarcísio de Freitas (Republicans) signed a decree this Tuesday (10) to reduce the Tax on Circulation of Goods and Services (ICMS) on aviation fuel. The rate goes from 13.3% to 12% and is valid until 2024.
Tarcísio also announced the creation of another 150 new flights in São Paulo in a meeting with representatives of the Brazilian Association of Airlines (Abear) and industry associates.
“This increase in the number of seats, in addition to contributing to connectivity, will reduce fares. It is what the consumer will perceive at the end”, said the governor.
The state government advisory noted in a note that, before the Covid-19 pandemic, the ICMS rate on Aviation Kerosene (QAV) in São Paulo was 25%.
“As a relief measure for the sector, one of the most affected by the halt in activities, the tax percentage was reduced to 12%. However, in 2021, the tax rose to 13.3% and with the signing of the decree, the rate returns to 12%”, it says in a note.
Abear highlights in a note that 700 new weekly flights were created in the state of São Paulo after the first QAV ICMS reduction in 2019.
*Posted by Ligia Tuon
Source: CNN Brasil
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