Commission assesses kerosene tax
The Commission has worked out the likely revenue from a potential future tax on aviation fuel.
[mailchimp_signup][/mailchimp_signup]The calculations, which were briefly considered by EU finance ministers last month, include both a tax on kerosene and a charge on airline tickets. This follows the suggestion in January by France’s president Jacques Chirac that money to tackle Third World problems could be raised by taxing aircraft fuel, airline tickets, and financial transactions.
The Commission estimates that a tax of €0.33 per litre of kerosene would generate €6-7 billion in revenue. A €10 charge on each intra-EU flight, coupled with a €30 charge on international flights, would produce a further €6bn.
The 12 finance ministers never intended to reach a decision on the analysis, but T&E director Jos Dings says the presence of the paper is still significant. “There is a growing sense in the industry that some sort of action to combat aviation’s environmental impact will have to happen soon,” he said.
“Some central figures in the industry are pushing the idea of emissions trading, because they fear that by opting for the course of action they are least frightened of, they will prevent more drastic action. Our view is that trading alone will not be enough.”
This news story is taken from the May 2005 edition of T&E Bulletin.
Related Articles
View All
EU Aviation Strategy - T&E Call for Evidence response
Dubai, London Heathrow and Los Angeles airports produce three times as much CO2 as the entire city of Paris
Airports in Europe account for more emissions than Latin America, the Middle East and Africa combined.
Spain joins growing European push for synthetic sustainable aviation fuel as Iran crisis exposes fossil fuel vulnerability
21 Spanish organisations are urging Madrid to back political commitment with an economic one ahead of the June EU Transport Council.