Aviation Groups Urge El Salvador to Drop Farm Tax Over Industry Risks

Published: 01/19/2026
Aviation Tariff IATA El Salvador
The International Air Transport Association (IATA) and the Salvadoran Association of Airline Representatives (ASLA) are urging the government of El Salvador to reconsider the $3.50 agricultural tariff levied on arriving passengers. They argue that this measure increases travel costs during the pandemic and could hinder the recovery of the aviation industry. The two organizations suggest that the government collaborate with the industry to find better solutions that ensure plant health security while promoting economic development.
Aviation Groups Urge El Salvador to Drop Farm Tax Over Industry Risks

WASHINGTON DC/GENEVA

The International Air Transport Association (IATA) and the Salvadoran Airline Representatives Association (ASLA) have jointly expressed serious concerns about El Salvador's recent decision to impose a $3.50 agricultural tariff on all incoming passengers. The aviation organizations warn this measure could hinder the country's aviation recovery and broader economic development.

As the global aviation industry struggles to recover from pandemic impacts, this new tariff adds further strain to an already fragile market. While acknowledging the Salvadoran government's legitimate need to strengthen phytosanitary security and protect agricultural sectors from pests, IATA and ASLA question the timing and potential consequences of this policy.

"We fully understand the Salvadoran government's determination to protect its agriculture, but the implementation method and potential impact of this new tariff raise concerns," said Peter Cerdá, IATA's Vice President for the Americas. "At this critical juncture for aviation recovery, any measure increasing travel costs could negatively affect economic revival."

ASLA President Juan Carlos Ramos emphasized aviation's vital role in connecting El Salvador globally, facilitating trade and tourism. "This tariff might suppress air travel demand, ultimately harming national economic development," Ramos stated.

Discrepancy Between Tariff Revenue and Actual Needs

Industry analysis suggests the tariff could generate $3-4 million annually based on current passenger volumes, but aviation representatives report lacking transparency about risk assessment methodologies or cost calculations. They suspect revenues may exceed actual service requirements, potentially surpassing other government departments' annual incomes.

"We need clearer information ensuring these funds truly enhance phytosanitary security rather than serving other purposes," Cerdá emphasized.

Ill-Timed During Industry Recovery

The $3.50 charge represents approximately 10% of all airport fees and taxes in ticket prices, potentially increasing travel costs to El Salvador when airlines can least afford demand suppression. Aviation remains among industries hardest hit by pandemic disruptions.

"As airlines struggle to regain profitability, cost-increasing measures may delay recovery," Cerdá noted, while Ramos warned the tariff might force carriers to reduce or cancel Salvadoran routes.

Contradicting Presidential Commitments

The associations highlighted President Nayib Bukele's previous commitments to maintaining aviation competitiveness as an economic recovery driver, suggesting this policy appears inconsistent with those objectives.

Proposed Alternatives

IATA and ASLA offered several alternative approaches:

  • Optimizing existing phytosanitary resource allocation
  • Enhancing risk assessment systems to focus inspections on high-risk passengers and cargo
  • Pursuing international cooperation for phytosanitary challenges
  • Implementing differentiated fees based on risk levels
  • Improving operational efficiency to reduce costs

The organizations emphasized willingness to provide technical support for implementing alternatives that balance agricultural protection with aviation growth.

Call for Transparent Dialogue

Both associations stressed the importance of establishing open communication channels with the Salvadoran government to collaboratively address challenges and find mutually beneficial solutions.

As global economic conditions remain uncertain, IATA and ASLA urge careful policy evaluation to simultaneously safeguard agricultural security and support aviation's critical role in economic recovery. Continued dialogue aims to reach solutions supporting both objectives.

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