A fuel tax agreement operates in the US and Canada which is known as the International Fuel Tax Agreement, or IFTA. Under the IFTA, truck operators (hauliers) record distance travelled and fuel consumed within each state/province (jurisdiction). Tax paid where fuel is purchased is later reconciled against actual use. Thanks to this reconciliation process, hauliers obtain a rebate from some jurisdictions and pay additional taxes to others.
Saudi Arabian Airlines has paid a €1.4 million fine levied by a Belgian regional government for not complying with the EU’s aviation emissions trading system (ETS), prompting calls for all member states to disclose non-European airlines in breach of the rules. Countries are required to do so under a 2008 EU law.
This paper, as well as the attached explanatory briefing, attempts to quantify the challenge for EU member states in reducing transport emissions under the expected 2030 ‘effort sharing decision’ (ESD) and the extent to which CO2 standards for cars, vans and trucks can help achieve those targets. It makes very clear what the impacts are of mandating, or not, improved vehicle efficiency.
A ruling by a branch of the British legal system could have far-reaching implications for the future of emissions trading for aviation. An adjudicator has dismissed an appeal by a non-EU airline which refused to report on its emissions from intra-EU flights under the EU’s emissions trading system (ETS). T&E says the impact of the decision is likely to be small, but the implications could be significant.
The city council in Gothenburg has decided to keep the city’s congestion charge despite the result of a referendum held last September that called for its abolition. The decision to maintain the charge was taken in order to protect funding for a new rail tunnel under the city centre.
Speech delivered by Jos Dings, T&E director, at the European Parliament Transport Committee’s hearing on the White Paper on Transport on 17 March 2015.
Ending the generous tax exemptions aviation enjoys would create a level playing field between all transport modes, help meet our 2030 climate targets, and answer the EU’s call for a shift away from labour taxation.
Aviation's tax-exempt status has always been an unjustified subsidy to the most carbon-intensive mode of transport. As the EU's commits to further emissions reductions and to a shift towards environmental taxation, so arguments for abolishing these exemptions are stronger than ever. This briefing outlining what steps the EU needs to take, and how ending these exemptions can reduce emissions and create employment.