IATA rejects new aviation tax in Argentina

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The possible creation of a new “security tax” for local, regional and international flights by the Argentine authorities “puts at risk the recovery of aviation” in the country, warned the International Air Transport Association (IATA) on Friday.

The organization expressed in a statement its “rejection” of this new tax, included by initiative of the Chamber of Deputies in the 2023 Budget Bill, which this week was approved in the Lower House and has yet to pass through the Senate.

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“Civil aviation security is a state responsibility and it is the state itself that must cover that cost, without passing it on to the passenger,” IATA said of a tax that seeks to finance the Airport Security Police.

Argentina’s National Civil Aviation Administration (ANAC) is charging “a myriad of fees and taxes on airline tickets,” IATA lamented, “which make the sector in Argentina one of the most heavily taxed in the world, both for passengers and for the companies that provide the service.

Currently, 54% of the total value of an airline ticket in Argentina “corresponds to taxes”, according to IATA data, which pointed out that air navigation costs in Argentina for an Airbus A320-200 are eight times more expensive than in Chile.

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“This recurring policy of taxing the industry is becoming unsustainable. Aviation has demonstrated its commitment to the government to work together (…), but instead of facilitating this process, the government imposes more obstacles,” said Peter Cerdá, IATA’s regional vice-president for the Americas, in statements included in the communiqué.

“Approving two new taxes in just two weeks is a crippling blow for the industry and mainly for all citizens,” added the IATA representative, referring to the additional 25% charge for international tickets and on credit and debit card purchases abroad when they exceed US$300 per month, known as the “Qatar dollar”.

According to the association, “Argentina has been losing competitiveness against its peers in the region”, something that worsened after the coronavirus pandemic: between June 2019 and June 2022, the South American country lost 53 air routes, 4,400 frequencies and 632,000 seats, according to IATA data, EFE reported.

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