Government of Sao Paulo signs ICMS reduction on aviation kerosene

On January 10, the Government of the State of Sao Paulo renewed for two years the reduction of the Tax on Circulation of Goods and Services (ICMS, in Portuguese) on aviation kerosene (QAV) with a rate of 12% until the end of 2024. The Brazilian Association of Airlines (ABEAR, in Portuguese) and its associates GOL, LATAM and VOEPASS, plus Azul, participated in the act at Palacio dos Bandeirantes, where they formalized the creation of over 150 new flights across the state (decree #67,441). The first agreement with Sao Paulo was signed in 2019, when the rate was reduced from 25% to 12%. In all, more than 700 new weekly flights were created after this reduction in the ICMS for kerosene, benefiting the entire economic chain and tourism in Sao Paulo. In 2021, this percentage was increased to 13.3%. Conducting the event for the signing of the agreement, the governor of Sao Paulo, Tarcisio de Freitas, highlighted the importance of airlines for the role of Sao Paulo as one of the largest markets in Latin America. “We are going to make every effort to join together with the aviation and tourism sector, so that we have more and more movements, more and more seats available. And at the end of the day, this increase in the number of seats, in addition to contributing to connectivity, is what will produce a reduction in fares. It is what the consumer will perceive at the end”, said the governor. “Reducing ICMS means growing and expanding flights and routes. That is what our country needs, this public-private integration that happened yesterday in SP. With this, we can promote the destination with all its attributes, increasing the flow of visitors”, says the executive president of the Sao Paulo Convention & Visitors Bureau and Visit Sao Paulo, Toni Sando. – https://www.aeroflap.com.br/governo-de-sao-paulo-assina-reducao-de-icms-sobre-querosene-de-aviacao/