Brazil is perhaps the only country in the world where tax reform is synonymous with tax increases.
Approved last week in the Chamber of Deputies, the Tax Reform project now goes to a vote in the Federal Senate, raising concerns about the consequences of this new scenario. The reform provides for the payment of 25% VAT on the airline industry.
According to ABEAR, airlines claim that, by paying 25% VAT, they will have an annual cost increase of R$ 3 billion to R$ 3,7 billion per company.
The federal government preaches the inclusion of people flying, but in practice it is increasing ticket prices.
The Voa Brasil program will benefit a small portion of the population where some have salaries above 5000 thousand reais. How are those excluded from the program?
The truth is that this program will not offer enough seats for the number of people entitled to the program. The queues will be like scheduling a surgery through the SUS. Months or maybe even years of waiting.
But even if the number of seats were enough to accommodate everyone entitled to the program. How are those families who have a house to , children, earn less than 5000 thousand reais and are not entitled to the program?
They will pay more for airfare, that is, they will not be able to fly.
There is no magic in the pen, if the government increases the number of seats available airlines will close their doors before they go broke.
The government needs to take practical actions that really benefit everyone, the only way is to reduce taxes and not the other way around.
In the end, this tax increase will affect, in addition to the airline sector, the tourism sector and its entire chain.
