New announcement of tax reduction on tickets in Ecuador

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A new reduction announcement was made taxes to the airfare on Ecuador with the aim of stimulating demand and promoting tourism.

multiple calls, Meetings and events have been held in Ecuador with the aim of having the national government modify, eliminate or reduce the different taxes that recharge air tickets in the country, all with the aim of making the country more competitive within an environment of strong competition with neighboring countries.

Some steps have been taken, although unsuccessful as was the reduction of the EcoDelta for airports managed by the DGAC, terminals that do not have any international operations, but at least it was a step.

It should be noted, that prior to the pandemic the airline industry contributed with 190,000 direct and indirect jobs that represent 3.2% of Ecuador's gross domestic product

The proposal to reduce taxes

However, a new meeting was held between THERE IT IS, ARLAE with the President of the Republic of Ecuador, Guillermo Lasso, and the Ministers of Transport and Public Works and Tourism to discuss various actions to increase the competitiveness of air transport in this country., mainly in the reduction in taxes and airport costs.

Seeking to boost connectivity, economy, employment and tourism, The Government promised to work on the following points:

1. The reduction of the Eco Delta and Tourist Power taxes;
2. The elimination of the currency exit tax for national airlines;
3. And the elimination of the aviation fuel tax.

What do you want to reduce??

We are going to review each of the points for a better understanding of the readers.:

1. The EcoDelta we have talked about it many times. Are the $50 dollars that only those of us who issue a ticket abroad pay. On your first attempt to reduce it, he lowered it to $5 at DGAC airports, Will the same reduction be for concessioned airports such as Quito and Guayaquil?? The logic should be like this so that all terminals can compete under equal conditions or will they propose some other formula for these specific airports??
   1. The Tourist Power is $10 and it is paid by people who issue a ticket from abroad to Ecuador.
2. The currency outflow tax It has already been eliminated for international airlines that fly to Ecuador, so doing it also for national airlines is fair if we want competition on equal terms.
3. Did you know we have a fuel tax? Well yes, is called the QB tax and this was created when the tax was removed fuel subsidy in november 2011 and thus the airlines could adjust their operations without economic impact for a while while prices were adjusted to the new reality of the value of the Jet A1, but this was never removed and remains until now.

Will fares go down??

The answer is yes, only going down the EcoDelta, that will depend on how much they lower it, we can see a lower value in international tickets, this will also depend on the airlines that update the values ​​that users pay and the commitment that this lower value is transferred to the user to meet the objective, what is driving demand.

What else can you do?

There are still issues that can be done to reduce prices, that I share with you in this post from a few years ago:

You can lower the price of air tickets in Ecuador

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