Brazilian airlines face new tax impost

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Friday, 23 September 2016

Brazil's airlines are impacted by a decision by Brazil's tax authority to list Ireland as a tax haven, with about US$306 million in new taxes on aircraft leases to be applied.
Eduardo Sanovicz, head of Brazilian airline association ABEAR called the impact "brutal".

Sanovicz said 60 per cent of the 520 aircraft flying commercially in Brazil are leased from companies registered in Ireland.

Brazilian airlines say jet fuel accounts for 37 per cent of airfares, compared to an average 27 per cent world wide, thanks to sales tax.