Argentina‘s Air Passengers Brace for Impost Changes as New Year Begins
Argentina’s new year is set to bring significant changes to air travel, with the elimination of the PAIS tax and the potential expiration of the 7% tax on airfares to international destinations. According to industry sources, the 7% tax, known as the ‘DNT,’ is scheduled to cease on January 5, 2025, as per the 2015 budget law. However, the government maintains that the tax will remain in effect until 2027, sparking debate among industry stakeholders.
Aerolineas are currently collecting the DNT through their booking systems, but with changes in tax structures often taking two to three days to reflect in these systems, a resolution is impending. In recent days, representatives from the Argentine Chamber of Airline Companies (Jurca) and the International Air Transport Association (IATA) discussed the matter, with consensus leans towards the tax’s expiration on January 5. The issue will now be reviewed by IATA’s Geneva offices.
The government insists that the DNT remains valid until 2027, as it funds the National Tourism Fund. However, airlines warn of considerable legal risks should they continue collecting the tax after its perceived expiration. "They want to force the industry to charge a tax that won’t be valid," said a representative from one of the country’s operating airlines. "Collecting a tax that doesn’t exist according to the law makes you liable to passengers who have paid something they shouldn’t have."
The DNT, an earmarked tax, is the primary source of funding for the National Tourism Fund, which supports promotional activities, training programs, and infrastructure development in the tourism sector. With the imminent expiration of the PAIS tax, the removal of the DNT could further reduce airfare costs in Argentina, which currently boasts some of the region’s highest airfare taxes.
Currently, air passengers also face other taxes and fees, including the aviation security tax ($8), aeronautical tax ($57), security tax ($1.40), and migration tax ($7). Additionally, there’s a 7% tourism tax and a 30% advance tax on corporate income, subject to potential refunds.
As the new year begins, Argentina’s air passengers eagerly await clarity on the future of the DNT, which could significantly impact travel costs and the country’s competitive position in the global air travel market.
Keep reading