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Austria To Halve Air Travel Tax

by Ulrika Lomas, Tax-News.com, Brussels

17 March 2017


Austria's air passenger tax will be reduced by 50 percent under proposals approved by the Council of Ministers earlier this month.

Under Austria's flight ticket tax, passengers departing from Austrian aiports pay an additional EUR7 (USD7.44) on short-haul flights, EUR15 on intermediate distance flights, and EUR35 on long-haul flights.

Under the new schedule, short-haul flights will be taxed at EUR3.50, intermediate distance flights at EUR7.50, and long-haul flights at EUR17.50. The changes are expected to be introduced on January 1, 2018.

According to the Government, the tax cut is intended to increase the attractiveness of Austria as a business and tourism destination, and to secure the future of Vienna airport as an international aviation hub.

The measure was welcomed by the International Air Transport Association (IATA), which has long campaigned against the growing tax burden on the aviation industry.

"In cutting its travel tax, the Austrian Government has taken an important step in the right direction," said Alexandre de Juniac, IATA's Director General and CEO.

"This is great news for Austrian air travelers and for everyone thinking of visiting Austria for tourism or business. Other countries should take note, particularly Germany and the UK, which continue to heavily tax air passengers."

TAGS: tax | business | aviation | Austria | Germany | Other

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