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Aviation Industry Opposes US Security Tax Hikes

by Mike Godfrey, Tax-News.com, Washington

23 September 2011


On behalf of the international aviation community, the International Air Transport Association has expressed its opposition to proposals from the US government to double the 9/11 passenger security fee and then to raise it in successive years through 2017 as part of the nation’s deficit reduction plan.

“Airlines and their passengers are being asked to pay for national security, although it clearly is a responsibility of government,” said IATA Director General and CEO, Tony Tyler. “To add insult to injury, more than half of the increased revenue from the higher fee will be diverted into the general fund and will not be used to make air travel more secure.”

Passengers travelling from US airports currently pay a security fee of USD2.50 per flight segment with a cap of USD5 one-way and USD10 per round trip. The proposal would double the fee to USD5 for all one-way trips and USD10 per round trip. Furthermore, under the proposal, the round trip charge would increase by USD1 per year between 2013 and 2017.

“This is absolutely the wrong approach. Aviation is a catalyst for growth in the worldwide economy. The economic outlook is uncertain and confidence among both businesses and consumers is low. Making air travel progressively more expensive is not a sound economic strategy. A similar per-passenger tax in the Netherlands cost the economy more than it collected in revenues,” said Tyler, adding that, “globally aviation supports USD3.5 trillion in economic activity and 33 million jobs.”

TAGS: individuals | tax | business | law | aviation | fees | travel and tourism | tax rates | United States

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