In the middle of the air crisis that crosses Colombia after the departure of Live and Ultra Air of the national air market. The Minister of Commerce, Industry and Tourism, German Umana Mendozaexplained the high cost of tickets in the country and the possibility of reducing the tax on them.
On the morning of Wednesday April 12, in dialogues with Snail News, The head of portfolio indicated that the world situation cannot be ignored, and in terms of airlines it had to do fundamentally with the fuel. “But in Colombia, 70% of the costs are imported, they are for goods that are handled in dollars. There was a major revaluation, ”he confirmed.
“In the cost structure It has to do with three things: fuel (in terms of prices), the costs that are in dollars and the increase from 5 to 19% in VAT,” explained the Minister of Commerce.
According to Umaña, the Government has entered into talks with the airlines for the increase in the rate. “They are redistributing their routes from the most profitable to those that are not, to have a proper average”, he indicated. In addition, he assured that the country’s airstrips are being expanded.
This is how the head of the Commerce portfolio maintained that in conjunction with inflation worldwide, the exchange rate in Colombia “has been rationalizing”; hand in hand if they are studying tax alternatives: “possibilities are being studied on the subject of VAT on tickets,” Umaña pronounced in an interview for the aforementioned medium.
It is worth remembering that, from January 1, 2023, VAT increased from 19% for plane tickets, after it was lowered to 5% for two years in order to contribute to the reactivation of the tourism sector after the arrival of the covid-19.
For its part, after the suspension of operations of Live and Ultra Air It has left hundreds of passengers in the country who had already purchased their trips with low-cost in suspense. A group of more than 70 congressmen submitted a proposal for the VAT in air tickets is reduced by a 14%.
With the initiative, led by the representative to the Chamber of the department of Quindío for the Liberal Party, Piedad Correalit is sought that the tax drop from 19% to 5%and in this way it is possible to benefit the country’s tourism sector, which in recent weeks has been impacted by the exit of the two low-cost airlines from the air market.
“Indeed, we have presented a proposal to be discussed in the Plenary of the House of Representatives, in the discussion of the National Development Plan (PND). That will contribute to promote tourism, lower the cost of tickets and alleviate a bit what is happening with aviation In colombia”explained the congresswoman for the Liberal Party.
From the Game Democratic Center announced that they would support the initiative led by representative Correal to reduce VAT on tickets to 5%.
in dialogue with RCN Radiohe Senator Ciro Ramirez explained that they will support the initiative by presenting a bill for the 5% VAT to be applied Permanentlythat is to say, that it does not depend on the Government of the day.
“The Democratic Center has insisted on this since the last tax reform in 2022, when the Petro Government and Minister Ocampo eliminated the VAT benefit from air tickets that had been established from the Duque Government”said the congressman to the Bogota radio station.
Immediately afterwards, Senator Ramírez stressed: “This time we will insist through a bill to re-establish those benefits of the VAT reduction for air tickets and also have aid for the aviation sector in Colombia, which is also in a crisis neglected by this Government”.
