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Taxes and democratization of air transport in ColombiaBy Estefanía Muriel for Ruta Pantera on 9/20/2025 3:51:26 PM |
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| More and more travelers in Latin America are wondering why flying can be so expensive. Airline tickets reflect not only the cost of transportation but also a significant burden of taxes and fees. In this context, Colombia ranks as one of the countries with the highest surcharges, becoming a benchmark for understanding the economic implications of air travel on the continent. A growing industry, but under tax pressure Over the past 15 years, air transport in Colombia has experienced significant growth. In 2024, more than 56 million passengers flew domestically and internationally, surpassing even the national population. This phenomenon has been possible thanks to the opening of the market since 2012, the entry of low-cost airlines, and increasing competition that has diversified routes and services. Paula Bernal, president of IATA in Colombia, highlights that 75% of passengers belong to income strata 2 and 3, which demonstrates a democratization of access to air transport. But this progress faces a significant barrier: taxes. In Colombia, taxes account for nearly 44% of the ticket price. This includes the 19% VAT on domestic flights, airport taxes, administrative fees, and other additional charges for international flights. “Colombia has a 39% VAT on airline tickets and fuel, much higher than other types of transportation, such as public transportation, which are VAT-exempt,” Bernal explains. On routes like Bogotá–Medellín, for example, the busiest in the country, taxes can represent up to 28.4% of the final price, including airport taxes and VAT. | ||||
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Comparison with other countries on the continent Although Colombia stands out for its tax burden, it is not alone. Argentina leads the way with 67% of surcharges on international flights, including taxes such as VAT, the PAIS tax, tax collections, and airport fees. In Peru, the tax is 18%; in Mexico, it can reach between 4% and 16%, depending on the flight and the airport, not including the Airport Use Fee (TUA), which recently increased. Countries like Panama apply a 7% tourist tax, while in Ecuador, Bolivia, and some Caribbean destinations like Haiti and the Bahamas, taxes also represent a significant portion of the final ticket price. In the United States, the tax is only 1.6% of the total fare. In contrast, countries like Brazil, Chile, Venezuela, and Jamaica do not directly tax tickets, allowing for more competitive prices. Factors that raise costs High prices aren***t just explained by taxes. In Colombia, 80% of an airline***s operating costs are dollarized, which exposes them to the volatility of the local currency. Added to this are inflation, airport fees, fuel prices, and the lack of government subsidies. These factors increase the cost of each seat, even before taxes. In Latin America, where rail systems are limited and geography poses challenges, aviation is essential for connecting regions. But this same dependence accentuates the impact of any increase in ticket prices. | |||
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