Buenos Aires - The International Air Transport Association (IATA) has called on the Argentine government to urgently reconsider the additional 35% tax which is to be levied on international airline tickets sold in the country with immediate effect.
“This decision could not have come at a worse time. Due to the COVID-19 pandemic, aviation in Argentina has been grounded for half a year and now that services will most likely be allowed to resume as of October, the imposition of further government taxes will be counterproductive to reviving demand and hinder the airlines in contributing to the socio-economic recovery of the country and its people,” Maria Jose Taveira, Area Manager Argentina, Paraguay & Uruguay, IATA.
Argentina already places substantial taxes on international air tickets sold in the country:
|Pais Tax||30% of the air fare* paid in Argentinian Pesos|
|DNT Tax (Tourism development tax):||7% of the air fare* paid|
|Airport tax for international departures||US$51|
|ANAC (Civil Aviation Authority) Tax||US$8|
|New additional government tax||35% of the air fare* paid|
* = includes all airline surcharges
The more than six-month suspension of aviation in the country has already led to the closure of one domestic airline along with three international airlines announcing that they will not return to the market once flights are allowed to resume. This will significantly impact air connectivity for the country and the imposition of the new tax will further decrease the country’s attractiveness for airlines and tourists. IATA is predicting that demand in the Argentine market in 2020 will decline by at least 67% as compared to 2019. As a result, airline revenues generated by the market will drop by US$3.26 billion, putting at risk 19,820 direct jobs and decreasing aviation’s contribution to the country’s GDP by US$ 1.63 billion.
IATA strongly opposes any form of tax or fee where the resulting revenue is not reinvested in the aviation industry and is merely meant to increase general government revenues. The imposition of the new tax directly contradicts accepted policies on taxation published by the International Civil Aviation Organization (ICAO), a specialized agency of the United Nations. In this respect, Argentina, as a signatory nation to the Convention on International Civil Aviation (Chicago Convention) and a Contracting State of ICAO, is obliged to adhere to the following:
- Article 15 of the Chicago Convention: “No fees, dues or other charges shall be imposed by any contracting States in respect solely of the right of transit over or entry into or exit from its territory of an aircraft of a contracting State or persons or property thereon”.
- Policies on Taxation in the Field of International Air Transport contained in ICAO Document 86321 , which states that “each Contracting State shall reduce to the fullest practicable extent and make plans to eliminate … all forms of taxation on the sale or use of international transport by air, including taxes on gross receipts of operators and taxes levied directly on passengers or shippers”.
For more information, please contact:
Corporate Communications – Latin America & Caribbean
Tel: +1 - 438 - 258 3155 or +1 – 514 – 240 4746
Notes for Editors:
- IATA (International Air Transport Association) represents some 290 airlines comprising 82% of global air traffic.
- You can follow us at twitter.com/iata for announcements, policy positions, and other useful industry information.
- Value of aviation report detailing the industry’s contribution to the Argentine economy.