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Nine EU Finance Ministers Call For Green Tax On Aviation

by Ulrika Lomas, Tax-News.com, Brussels

26 November 2019


Nine EU member states have called on the European Commission to draw up proposals for an EU-wide aviation tax.

The recommendation was made in a joint statement issued by the Netherlands, Germany, France, Sweden, Italy, Belgium, Luxembourg, Denmark, and Bulgaria.

According to the statement, "compared to most other means of transportation, aviation is not sufficiently priced." The statement explained that "aviation transport is exempted from excise duties, no VAT is levied on international flights, there is no coordinated ticket tax, and economic instruments to curb greenhouse gas emissions can be strengthened in the aviation sector."

The signatories argued that "more coordination" in this area could ensure that polluters "pay a fair price for the use of aviation transport." They added that EU-wide coordination on this matter would be the most effective way forward and would help create a level playing field.

The statement called upon the European Commission to "bring forward a proposal for an EU initiative on aviation pricing." This could involve "aviation taxation or similar policies."

The Netherlands has also said that if an agreement is not reached at an EU level by the end of 2020 it will impose its own national flight tax. A bill to this effect has been submitted to the country's parliament.

TAGS: environment | tax | value added tax (VAT) | Belgium | Denmark | Netherlands | aviation | Bulgaria | Luxembourg | environmental tax | tax rates | France | Germany | Italy | Sweden | tax reform | European Union (EU) | Europe

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