luisde8cd
Posts: 2444
Joined: Thu Aug 12, 2004 12:02 am

Venezuela: Finally! Tax Incentives 4 Fleet Renewal

Thu May 19, 2005 4:27 am

Unbelieveable! the recently passed civil aviation law in the Venezuelan parliament establishes 75% tax exepmtions on the import of aircraft, engines, parts, etc.

I really hope that this will encourage airlines to renew their fleets. Venezuelan airlines have old fleets, mainly DC9s, 732, 722 and DC10s.

Quote:

They exonerate of payment of taxes to companies of Civil Aeronautics By a lapse of five years the air lines will enjoy of the exoneration the Tax on the Rent on 75% of the investment that makes for the benefit of this aeronautical service, according to establishes it just approved Law of Civil Aeronautics.

It explains the new legislation that passed that period the president of the Republic has the power, in cabinet, of being able to grant total or partial exonerations of tributes for the imports that are made within the framework of this activity.

In tributary matter also one settles down that from the entrance in use of the Law and by a period of five years, the public benefit on watch of national aerial transport of passengers will be free of payment of tributes by enterprise assets, tangible and intangible, product of his activities, as well as in the definitive import of airships, motors, accessories, parts, spare parts that are indispensable for the national aeronautics.

The norm will be applicable to all civil airship that is in the Venezuelan territory or flies in its airspace; her fleeting crew and effects transported in her, as well as to the cause that happen on board of Venezuelan civil airships when they fly outside the airspace of the Republic, express a bulletin of press emitted by the National Assembly.

Also she will be applied to the committed facts on board of civil airships nobodies is his nationality when it happens in the foreign airspace and produce effect in the Venezuelan territory, in addition to facts happened in foreign civil airships that fly Venezuelan airspace.

Source (SPANISH)
http://www.eluniversal.com/2005/05/18/eco_art_18202C.shtml
 
B744F
Posts: 2927
Joined: Sat Jan 21, 2006 4:52 pm

RE: Venezuela: Finally! Tax Incentives 4 Fleet Renewal

Thu May 19, 2005 4:32 am

I'm sure the government doesn't need the tax revenue... with all its citizens living in great conditions and everything...
 
cayman
Posts: 739
Joined: Sat Aug 09, 2003 2:28 am

RE: Venezuela: Finally! Tax Incentives 4 Fleet Renewal

Thu May 19, 2005 4:34 am

That is a good start but these struggling Vzlan airlines will now have to come up with the capital or financing for fleet renewal---

Financing will likely be difficult with the Castro communist government in power in Venezuela (as represented by Hugo his marionette)--

The airlines will not have the capital themselves to invest--

Although admittedly it is a very good start be reducing tariffs---
 
Celticmanx
Posts: 94
Joined: Sun Apr 01, 2001 5:06 am

RE: Venezuela: Finally! Tax Incentives 4 Fleet Renewal

Thu May 19, 2005 8:02 am

CayMan,

I just have a word for you: CONVIASA

Very remarkable indeed what is happening lately in the Aviation industry in Venezuela. There are a lot of projects and plenty of companies willing to expand both domestic and internationalwise.
Definetely, this is not even a shadow of a decade ago, where LAV and Viasa where just leaded to death.

Regards,

Manx
 
cayman
Posts: 739
Joined: Sat Aug 09, 2003 2:28 am

RE: Venezuela: Finally! Tax Incentives 4 Fleet Renewal

Thu May 19, 2005 11:55 am

Vzla should be poised for a major aviation boom--indeed general economic boom--the market fundamentals are there, the room to grow, and in aviation a need to modernize and expand.

However you are in a dream world if you think much or even any of this expasnion will happen so long as the Chavistas remain in power.

They scare away investors in droves and will only continue to do so.
 
rojo
Posts: 2254
Joined: Tue Sep 05, 2000 6:08 am

RE: Venezuela: Finally! Tax Incentives 4 Fleet Renewal

Thu May 19, 2005 1:09 pm

The only problem will be the weak currency and possibilities of future devaluations. No airline will invest in new airplanes, since they will have to pay or lease them in USD's. I guess airlines could buy used airplanes instead and pay them fully in order to benefit from this new law...

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