Rio de Janeiro proposes tax deferral for aviation kerosene

The Government of Rio de Janeiro has submitted a bill to the State Legislative Assembly (Alerj) to restore tax deferral on aviation kerosene (QAV). The proposal aims to increase the competitiveness of aircraft refueling and strengthen Galeão International Airport by allowing producers to postpone the payment of ICMS tax when selling fuel to distributors within the state.

This mechanism is not a tax exemption but a postponement of payment to a later stage in the commercial chain, mirroring a tax regime already utilized by Minas Gerais. The state government noted that the expiration of previous benefits has placed Rio at a disadvantage compared to São Paulo and Minas Gerais, influencing airline decisions regarding refueling locations.

To maintain the benefit, which would be valid for five years, companies must meet specific economic, social, and environmental performance targets. These include maintaining ICMS tax revenue levels, preserving employment numbers, and ensuring environmental regulatory compliance. The aviation sector in Rio supported over 20,000 jobs in 2025, and the government projects an increase in daily flights through 2026.