Air tickets: Government studies the possibility of lowering VAT from 19 to 5 - Sectors

The effects of the dollar on airline tickets and other products

International air tickets will occur immediately with the rise of the dollar.

Photo:

Diego Santacruz. TIME

International air tickets will be produced immediately with the rise of the dollar.

In January the VAT on tickets increased. The government analyzes if it can be lowered again.

He VAT on air tickets in Colombia it rose again from 5 to 19 percent this year, since in the midst of the pandemic it had been reduced in order to reactivate the tourism sector.

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“To achieve a greater movement of travelers in Colombia, their support is essential in air tickets; and regarding hotel and tourism services, maintain the VAT exemption or seek a differential rate,” Cortés said.

And at the closing of the event, which took place yesterday, the Minister of Transport, Guillermo ReyesHe said that they are studying the possibility of whether it can be lowered again.

Iata warned of a possible contraction.

Due to the VAT increase, the International Air Transport Association (Iata) Watch for a possible contraction in demand that could influence a loss of the socioeconomic benefits that aviation brings to the country.

For this reason, he called on the Colombian authorities to review market conditions so that “the aviation sector and tourism do not lose competitiveness, dynamism, and the strong recovery process that they have had so far after the pandemic.”