"Government" is the solution? Or is it rather the problem?

in steemstem •  6 years ago 



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Given the poor service of airlines with the undesirable broad market power (Avianca), and the high prices of some tickets, many have called on the government to control prices.



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We have the geographic conditions to be leaders in the region in connectivity, but no. Why?


We are the third country in the region in the most burdens and taxes in the industry.



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That means that, according to Andrés Uribe, manager of IATA in Colombia, if an international flight is worth 500,000 pesos, the State would be taxed more than 200,000 pesos (42%) or up to 166,000 pesos if the flight is national (33%). Source/Fuente


This is also confirmed by the Travel & Competitiveness Index. Tourism of the World Economic Forum (wef).


While Chile ranks 3rd, Colombia is ranked 134 out of 140, among the worst in the world.



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Even on occasion, the private initiative of the low-cost airline VivaAirCol has offered free tickets (Source/Fuente) Only paying taxes.


The low-cost have done more for the mobility of the low-income citizen than the government itself.



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These taxes are paid:
IVA
Carbon tax
Tax of US 38 for being from Colombia and leaving the country (120,000 pesos)
and US 15 for being a foreigner and coming to Colombia (50,000 pesos aprox)
ICA
Surveillance fee
Rent
4×1000
Imp. To the payroll
Parafiscal tourism contribution (they charge double)


And do we improve with the financing law? Of course not.
Instead of lowering taxes, they put more.
Now they collect, above all, one more dollar to buy a ticket and leave the country.
And another 15 dollars (45 thousand pesos) for entering Colombia.



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But what should be done?


According to the WEF, comparing ourselves with the OECD, we must:


1. Lower (and improve) taxes.


2. Increase the quality of infrastructure.


Even also 3. Increase airlines and competition (open skies policy / deregulation).


Lowering taxes serves. In 2014, the airport tax rate in Cartagena was reduced from 92USD to 38USD (58%).


Result: according to IATA, international passengers increased by 26%.




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This, according to Fedesarrollo calculations, would have a significant impact on the economy. For each 1% increase in passengers, the Bolivar deparment could increase its tourism GDP by 0.46% and air transport GDP by 0.26%.


The government is the problem.



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