Project PRS 55/2015, pending in the Senate, sets the maximum rate of ICMS on aircraft fuel by 12%. If approved, it will reduce the costs of the sector, boost the competitiveness of Brazilian airlines and increase efficiency in high-demand destinations, opening up opportunities for the creation of 74 new daily flights linking the north and northeast to the central, southeast and south of the country . That is, it will benefit the market as a whole and the particular passenger.
Fuel is the item that weighs most in the cost composition of airlines, accounting for 26% of Brazilian companies’ operating expenses, while the world average is 14%. One of the main reasons for this distortion is the ICMS tax on domestic aviation kerosene, with different rates for each state, ranging from 12% to 25%.

Photo: Reproduction
Source: DailyTourism