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Chile begins reduction of airport departure tax

19 Oct 2018

The tax for domestic flights will immediately drop by 20% and, for international flights, be cut from US$30 to US$26.

Thanks to the sustained growth of air traffic in recent years, Chile will gradually reduce its airport departure tax for all domestic and international flights.

For domestic flights, the tax will immediately be reduced by 20% and this will be followed by two further 10% reductions in 2019 and 2020.

In the case of international flights, there will be an immediate reduction from US$30 to US$26, followed by cuts to US$25 and US$24 in 2019 and 2020, respectively.

Economy Minister José Ramón Valente told Emol that the intention is to bring the airport tax charged by Chile down to the average OECD level, which it exceeded. “We want to be a competitive country internationally, not only at the regional level,” he explained.

Undersecretary for Tourism Mónica Zalaquett indicated that “through the cut in the tax, which will have a direct impact on the value, we will be helping to give a big boost to domestic tourism.” She added that “I have no doubt the number of airlines will increase.”

According to the Supreme Decree introducing the reduction, which was published this week, the increase in air traffic has benefitted the country economically and socially, improving connectivity and promoting economic activity.

It also indicates that the investments made in modernizing the country’s aerodromes and airports mean an increase in service standards and the quality and capacity of the available infrastructure.

It adds that a factor that could promote the growth of air transport is to set airport taxes at a level that fosters growth in demand, reducing a barrier to the market’s expansion by incorporating potential new passengers.

By 2020, when the three-stage reduction has been completed, Chile will have the fourth lowest departure taxes, below those charged, for example, by Peru and Brazil.

Fuente: InvestChile