ALTA speaks out against new proposed fuel tax in Mexico

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The Latin American and Caribbean Air Transport Association (ALTA) has called for a proposed fuel tax in Mexico to be eliminated.

The new proposed tax would add 0.12 Mexican pesos ($0.009) to each litre of fuel, which could lead to additional costs of 480 million pesos annually for Mexican carriers, says ALTA.

"The proposed tax represents an additional financial burden to airlines which already absorb fuel handling fees," it adds.

ALTA says that because jet fuel is not subsidised in Mexico, it already costs airlines 3% to 7% more to fuel up in Mexico than in the USA.

"The added fuel tax translates into an increase in the prices of air tickets, a possible reduction in routes and consequently would impact the creation of jobs. Because of the high sensitivity to airfares it is estimated that Mexican passenger traffic would be reduced considerably," it adds.

ALTA's new executive director Eduardo Iglesias says in a statement: "Lawmakers across the region need to be aware of the socioeconomic impact generated by the passing of initiatives such as the proposed fuel tax under consideration. As an industry, we want to facilitate a commercial environment for aviation to continue to thrive so that we can help bring about the socioeconomic benefits projected for Latin America and the Caribbean."