Colombia aviation: latest government tax moves show old habits die hard

Colombia's airlines embarked on 2023 facing higher taxes - the country's government eliminated VAT (value added tax) reductions that were instituted during the COVID-19 pandemic to help airlines weather the crisis.

Although Colombia did not offer direct financial aid to its airlines, the tax reduction and other measures that were instituted to ease the burden for operators garnered praise from the industry.

Now Colombia, which has experienced one of the swiftest recoveries worldwide, faces the potential that increased taxes and other macroeconomic factors could quash the country's quick rebound in demand.

The moves by the government could also send a message that as trends return closer to normal, old habits adopted by governments in Latin America could appear to be hard to break.