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Brazil's Airlines Appeal For Tax Breaks

by Mike Godfrey, Tax-News.com, Washington

05 October 2001

The leading airlines in Brazil have joined forces to call upon the government to introduce tax breaks to help them ride the economic crisis affecting the aviation industry.

Presidential Chief of Staff, Pedro Parente, has received a petition from Varig, Tam, Transbrasil, Vasp and Gol requesting an exemption from the 'ataero', an airport tax and the ICMS goods and services transportation tax which adds an extra 26 per cent to fuel expenses.

Parente has said that presently the government is lacking the financial clout to help out the airlines but they have been given the authority to add US$5 in tax per ticket on both domestic and external flight to cover the extra security costs.

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