CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. German Plane Tax Drives Passengers Abroad

German Plane Tax Drives Passengers Abroad

by Ulrika Lomas, Tax-News.com, Brussels

26 July 2011


Despite an overall increase in recorded passenger numbers at airports in Germany in the first half of the year, low-cost and domestic flights have been significantly affected by the coalition government’s plane ticket tax.

In a recent release, the German airport association ADV reveals that although the number of passengers at German airports rose by 8.1% in the first six months of 2011, despite turmoil in the Middle East and North Africa, high oil prices and the effects of the volcanic ash cloud, developments at individual airports in Germany varied considerably.

ADV emphasizes that the effects of the plane ticket tax, which entered into force at the beginning of the year, are becoming increasingly visible. Indeed, airports with a high proportion of low-cost and domestic flights have shown a significant decline in passenger numbers, the association reveals.

Warning of potential job losses in Germany, chief executive of ADV Ralph Beisel explained that the levy has led to a dramatic decline in passenger numbers in some airports in Germany. Beisel emphasized that airports in bordering states, including the Netherlands, have greatly benefited from the tax, revelling in increased numbers of new passengers.

According to ADV, low-cost travel declined by 0.8% in the first half of 2011, while sustained declines were observed particularly in the case of low-cost domestic flights, which in some cases fell by 22.6%. In stark contrast, ADV analysis reveals that numbers significantly increased at bordering airports in the same time period (for example numbers rose by 29.7% at Eindhoven airport and by 71.8% at Maastricht airport). Germany’s plane ticket tax represents a clear location disadvantage compared to bordering foreign airports, the analysis shows.

The government’s new airline ticket tax, which entered into force from January 1, 2011, is levied at EUR8, EUR25, or EUR45 per passenger, depending on the destination. The tax is expected to yield EUR1bn in additional revenues for the government annually.

German airlines fiercely opposed and criticized the government’s plans from the outset, warning of competitive disadvantages for the country's industry and arguing that passengers in border areas would merely fly from airports abroad.

TAGS: tax | Netherlands | aviation | Germany

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »