Government of São Paulo implements changes to receive more flights

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Government of São Paulo implements changes to receive more flights
Wed February 06, 2019

A reduction in the aliquot of ICMS for aviation fuel has been announced, with this measure providing for an increase of 490 flights. São Paulo today receives 60% of international air traffic

The government of São Paulo announced today, in an event held at the Palacio de los Bandeirantes, the new aliquot of ICMS for aviation fuel, which falls from 25% to 12%. With this initiative, the state plans an increase of 490 flights, with the possibility of "stopover", which means a stop, at no cost to the travelers, before the final destination and an increase in the collection of R $ 111 million.
"São Paulo today receives almost 60% of international flights arriving in Brazil, and this initiative represents a great advance for the sector in the country, increasing our competitiveness and, as a result, generating an increase in the number of tourists who come here, as in the generation of jobs and income for Brazilians, "declared the president of Embratur (Brazilian Institute of Tourism), Teté Bezerra, who participated in the announcement on Tuesday in the capital of São Paulo.
The cut in the aliquot that affects the aviation kerosene marketed in São Paulo is an old lawsuit by the airlines. According to sector studies, the price of fuel represents around 40% of the total operating cost of the companies.
"It's a great victory for national tourism, in a country of continental dimensions like ours, connectivity through the air network is fundamental," said Tourism Minister Marcelo Álvaro Antônio. "The next step is to approve the total opening of airlines to foreign capital in the National Congress to allow increased competitiveness with more companies operating in the country and limit the ICMS by 12% for all states with the project that transact in the Senate, "he added. Of the 27 units of the Federation, 18 already practice aliquot of up to 12%.
"We are establishing a new paradigm for Brazilian tourism," said São Paulo Governor João Doria. "We are going to expand the economic activity and, with it, increase the generation of employment and income for all Brazilians, and not only in São Paulo," Doria added.
The decrease of the fuel tax for the air sector will be compensated by the economic impact generated by the counterparts. With the new aliquot, the collection foreseen for 2019 on the commercialization of aerial kerosene will fall from R $ 627 million to R $ 422 million, but the total compensation - direct, indirect, induced and catalyzed - represents a forecast of at least R $ 316 millions of dollars.

Another positive news for the sector, and one that stands out among the items provided in the counterparts of the airlines, is the so-called 'stopver'. A fund of R $ 40 million will be formed by the companies to finance a marketing plan to encourage the extension of the stay of visitors in San Pablo for one or two days longer than expected.
According to a study presented by the Secretary of Tourism of the State of São Paulo, Vinicius Lummertz, if 2.5% of the passengers that pass through the three SP airports comprise the connection with the 'stopover', a total of R $ 6.9 billion will be injected into the state's economy and 59,000 jobs will be created. The movement follows the model already tested in other destinations such as Lisbon, Portugal, with TAP; Istanbul, Turkey, with Turkish Airlines; and Abu Dhabi, in the United Arab Emirates, with Emirates.


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