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Rio de Janeiro to waive $215 million in

The state government of Rio de Janeiro has sent a bill to its legislature to defer a key tax on aviation fuel, aiming to match the competitiveness of

The state government of Rio de Janeiro has sent a bill to its legislature to defer a key tax on aviation fuel, aiming to...

The government of Rio de Janeiro state has proposed a law to defer the payment of a major tax on aviation fuel sales. The move aims to match the tax competitiveness of neighboring São Paulo and Minas Gerais states to support a recent surge in local air traffic.

The bill, Project Law 8.224/26, was sent to the Legislative Assembly and published in the Official Gazette on August 28. It allows fuel producers to defer the Tax on the Circulation of Goods and Services, pushing its collection to later stages of the commercial chain within the state. According to the state government, this does not cancel the tax but shifts when it is collected, specifically to the moment when distributors transfer the fuel to facilities at airports.

Fiscal Impact and Conditions

The state estimates the fiscal waiver will be 192.20 million reais for the current fiscal year. Over the next four years, the projected waiver reaches 1,127.37 million reais, which is approximately $215 million. This financial impact is already accounted for in the state's Annual Budget Law.

This tax scheme revives an exemption that was in place from 2011 but expired last year due to a lack of renewal. The new proposal has a duration of five years from its effective date. The deferral comes with conditions for the involved companies. Authorities will conduct annual evaluations to monitor the maintenance of overall tax revenue, the preservation of jobs at the benefited establishments, and compliance with relevant environmental agencies.

Traffic Growth and Flight Schedules

The stimulus for commercial operations is a direct response to increased air traffic. The state Executive branch cited statistics from the Brazilian Association of Airlines and the National Civil Aviation Agency, pointing to a 15% rise in local air traffic during 2024 and 2025. Official estimates indicate growth of 6.3% for this year, a figure that exceeds the national average.

Airlines have scheduled an average of 251 daily flights from Rio de Janeiro. This total is split between domestic and international services.

Flight TypeAverage Daily Flights
Domestic202
International49

Airport Landscape in the State

Beyond the two main airports serving the state capital, Santos Dumont and Galeao, there are about ten smaller terminals distributed across Rio de Janeiro's territory. Currently, only one other airport with regular passenger flights also serves the metropolitan area: Jacarapegua Airport.

The Cabo Frio airport at least receives flights from Argentina during the summer season. Others, such as Macaé, Goytacazes, or Volta Redonda, have not had services for several years.

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