Nine EU countries have called to introduce aviation tax

Nine EU countries have called to introduce aviation tax

Nine EU countries have called on the bloc’s incoming executive Commission to introduce an EU-wide tax on aviation so as to charge a polluting industry more for its emissions and put all member states on level pegging.

In a letter to the EU’s executive in charge of climate, Frans Timmermans, the finance ministers of Germany, France, the Netherlands, Sweden and five other EU states appealed for “some form of aviation tax” without giving specifics.

One of the largest countries behind the letter was Germany, which already levies its own aviation tax. Its finance minister, Olaf Scholz said it might serve as a blueprint for an EU-wide aviation tax.

“The German aviation tax has proven itself. It can also be a model in the EU for more climate protection,” Mr Scholz said.

The nine countries said an aviation tax where “the polluter pays a fairer price for the use of aviation transport” is necessary to combat climate change.

Transportation is the only European sector currently increasing its emissions.

“Compared to most other means of transportation, aviation is not sufficiently priced,” the letter said, recounting all the perks currently enjoyed by the sector, including exceptions from excise duties and the fact that no Vat is levied on international flights.

Higher taxes on polluting industries have been hotly debated among EU states as the EU requires unanimity when deciding on policy, such as taxation.

Ambitious targets for reducing carbon emissions by at least 50% by 2030 are part of the agenda of the new European Commission.

In July, France announced a levy on airlines flying from its airports to help support the environment, a move that Air France said would significantly hurt its competitiveness and add over €60m in additional costs per year.

One of the signatories of the letter, Sweden, introduced an aviation tax on its own in 2018 and another, the Netherlands, is planning to introduce one in 2020 unless an EU agreement is reached before then.

“By taking action now, we hope this important issue will take off in Europe too,” Menno Snel, the Netherlands’ finance minister said in a statement.

Reuters

More on this topic

A wealth tax makes sense so what are we and the government afraid of? A wealth tax makes sense so what are we and the government afraid of?

Limitarianism: Rein in mega-wealthy before it’s too lateLimitarianism: Rein in mega-wealthy before it’s too late

Rock and hard place for Irish tax regimeRock and hard place for Irish tax regime

OECD tax overhaul raises stakes for IrelandOECD tax overhaul raises stakes for Ireland

More in this Section

eir teams up with Amazon Prime to offer customers access to the service as part of TV packageeir teams up with Amazon Prime to offer customers access to the service as part of TV package

Business movers: Award-winning Katie Cunningham joins BBDO DublinBusiness movers: Award-winning Katie Cunningham joins BBDO Dublin

Non-stop flight from Heathrow to Sydney takes offNon-stop flight from Heathrow to Sydney takes off

Connectivity’s vital role in future working life of rural communitiesConnectivity’s vital role in future working life of rural communities


Lifestyle

Amid a flood of interest in the island nation in recent years, here’s a few under-the-radar wonders to help separate you from the herd.6 amazing off-the-beaten-track destinations in Japan

November weather leaving your skin dry and dull? Rachel Marie Walsh picks the best new products to keep it spring fresh.Product Watch: The best new products to keep your skin spring fresh

Here is a selection of hot, comforting desserts for a cold winter’s evening. The first is a luscious and decadent chocolate orange dessert that stays soft in the centre.Michelle Darmody: Comforting desserts for a cold winter’s evening

Jackie Turner, genetic counsellor, Clinical Genetics Centre for Ophthalmology, Mater Hospital, DublinWorking Life: 'I catch the quiet 6:15 train, a place to gather my thoughts and plan my day'

More From The Irish Examiner