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Stockholm Arlanda Airport (photo: Swedavia)

Tax on aviation fuel leaked in EU report

A leaked European Commission report claims that a new fuel tax would be like removing almost eight million cars off the roads.

Taxing jet fuel would cut emissions by 11%, a leaked European Commission report claims, with no impact on jobs or the economy.

Applying a tax to jet fuel of €330 per thousand litres, for certain types of flights, would increase ticket prices across the EU by 10% to an average of €333, the report states.

It would cut the annual number of travellers by 11% to 613 million, and would be like removing almost eight million cars from the roads.

The report was revealed by Brussels-based pressure group Transport & Environment, which promotes policies based on sustainable development.

Commissioned in 2017 and completed by mid-2018, according to a document seen by the Financial Times, it has never been released.

Aviation’s tax holiday
Globally, aviation fuel is exempt from taxes when it arrives in a plane at an international destination. There is also no domestic fuel tax in Europe, unlike in countries such as the US, Australia, Japan, Canada and Saudi Arabia.

“Aviation’s decades-long kerosene tax holiday needs to end now,” Bill Hemmings, aviation director at Transport & Environment.

“This is essential to fight climate change and will help the millions afflicted by unbearable aircraft noise. Europe’s unique and deplorable status as a kerosene tax haven is indefensible.”

EU finance ministers will meet in The Hague on June 20-21 for a summit on aviation taxation.

Aviation CO2 emissions within the European Union grew by almost 5% last year, while those from all other industries fell by almost 4%.

“This report should have been published long before, so that governments and decision makers can be better informed about the options available,” said Andrew Murphy of Transport & Environment.

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