To attract foreign interest in Brazil's upcoming international airport concession tenders, the federal government is considering legislation that gives tax breaks to eventual concession holders, state news service Agência Brasil reported.
Through a bill or a provisional measure, the government aims to reduce the tax on baggage handling, flight connections and others, as well as considering an overall cut on the ICMS interstate sales tax which affects airport operations cost.
Creating a single ICMS rate for the entire nation is also a possibility, according to transport minister Mauricio Quintella, the report said.
Meanwhile, another measure being considered by the ministry involves creating a separate company to manage the domestic airports of Congonhas (São Paulo city), Santos Dumont (Rio de Janeiro city) and the airport in Amazonas state capital Manaus. Such a company could be created as a mixed enterprise Agência Brasil reported airport authority Infraero president Antônio Claret de Oliveira as saying.
UPCOMING AIRPORT CONCESSIONS
Brazil's civil aviation agency ANAC is planning four international airport concession tenders in H216 involving total investments of some 10.5bn reais (US$3.27bn).
The airports serve Bahia state capital Salvador (pictured above), Ceará capital Fortaleza, Rio Grande do Sul capital Porto Alegre (pictured below) and Santa Catarina capital Florianópolis. The Salvador, Fortaleza and Florianópolis concessions are for 30 years and the Porto Alegre concession for 25 years.
Porto Alegre international airport (CREDIT: Infraero).