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Sweden Mulls New Aviation Tax

by Ulrika Lomas, Tax-News.com, Brussels

09 December 2016

A commission appointed by the Swedish Government to explore options for taxing air travel has recommended the introduction of a three-tier flight tax based on distance traveled.

The commission proposed in its recently published report that airlines should pay a per passenger tax of SEK80 (USD8.77) for domestic and European flights. This would rise to SEK280 for flights to destinations beyond this zone, up to 6,000km from Stockholm. A SEK430 charge would apply to fares for destinations farther than 6,000km away.

The tax is intended to offset the environmental impact of the aviation industry's carbon emissions, and was recommended by the commission following an analysis of similar levies in other European countries. It is expected to raise between SEK1.75bn and SEK1.85bn per year in revenue.

The commission proposed that the tax be introduced on January 1, 2018.






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