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Jet fuel tax hopes lifted by leaked EU report

May 14, 2019 | News

(14 May 2019) – Aviation’s carbon footprint would fall by 11%, or some 16.4 million tonnes of emissions, if the EU were to scrap jet fuel’s tax derogation, according to a leaked European Commission study.

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Imposing a tax of €330 per thousand litres of kerosene could help address global warming, reduce noise pollution and raise €27 billion in revenues every year, a new study compiled by Dutch consultants CE Delft for the EU executive has revealed.

The report, leaked to the press on Monday (13 May), found that ticket prices would increase by an average of 10% and aviation sector jobs would be cut by 11%, as a result.

Aviation is currently taxed in different forms in Europe, from VAT on domestic flights to airport taxes, but fuel is exempt from levies thanks to an international agreement from 1944.

Other countries do impose fuel taxes on domestic flights though, including Canada, Japan, Saudi Arabia and the United States. (EurActiv)

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