Environmental organisations have long been concerned about the current rules relating to passenger transport VAT. The transport sector now accounts for the largest share of the EU’s greenhouse gas emissions, and the growth of aviation emissions now outstrips almost all other GHG sources. Yet member states oversee a VAT system which, through voluntary derogations, further inflates aviation’s rapid growth while also distorting competition with less carbon-intensive transport modes.
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T&E welcomes the European Commission’s current review of the VAT system and proposals to establish a definitive VAT regime. This brief sets out T&E views on the current situation together with our proposals on how VAT rates can be best reformed to benefit EU competitiveness while also contributing in a positive way to the achievement of the EU’s climate goals.
T&E's annual overview of key transport trends, challenges and achievements
European transport is still heavily reliant on fossil fuels, but electric vehicles are on the charge as the EU’s green policies start to bite. Powerin...
A new study for the Transport Alliance for Clean Air assesses what interventions are required to meet EU air quality standards in 2030.
Can we get out of our mobility habits?
System thinking is badly needed in mobility policy. The Covid-pandemic – undesired and unpleasant – provided two illustrations.