The president of the International Air Transport Association (Iata), Peter Cerdá, asked the national government to evaluate a new VAT reduction on air tickets.
This because of since last January 1st the VAT has increased from 5 percent that was in force for two years, up to 19 percent, since the Government did not renew this benefit for users.
(Also read: ‘VAT will be lowered on air tickets’: mintransporte; ‘You can’t’: minhacienda)
Peter Cerdá argues that a study carried out by Iata, and according to his estimates, if this dynamic continues, it will generate a reduction of 4.9 million domestic passengers (15.4 percent) and 1.9 million international passengers (13 percent).
«This is very important, it is worth remembering that 90 percent of foreigners who arrive in the country do so by airit is also an essential engine in the economy and reaches all corners of Colombia,” he said.
In response to this request, the Minister of Transportation, William Camargo, assured that, although this reduction in VAT was requested since last year, the macroeconomic effects and the situation the country is going throughmakes it more difficult to authorize.
However, he stated that this topic continues to be on his priority agenda and he is willing to reopen the conversation.
(Also read: ‘It will stick with its ‘low cost’ model: Civil Aeronautics on Viva Air)
«Today we would like to tell you that we have talked with the Minister of Finance and we would like to expand that reduction, we are not optimistic about itbut we do not give up that this possibility can be given», acknowledged the Minister of Transport.
The aviation sector in Colombia contributes annually 10,500 million dollars to the Gross Domestic Product (GDP) and more than 665,000 jobs.