European governments could reap €34bn more in aviation tax

Across Europe, all countries apply a zero Vat rate to international air transport, and Ireland is among five countries to apply a zero rate for domestic journeys also. Picture: David Creedon

More than €34bn is being left on the table by European governments every year through low taxation of aviation, a new study by an environmental body has claimed.

The highly-respected European Federation for Transport and Environment, known as Transport & Environment (T&E), said current pricing for aviation at EU level "barely represent 16% of the total effective revenues that could be generated by properly taxing the sector".