Implementing jet fuel taxation in Europe today
Research commissioned by T&E shows that nothing should prevent EU countries from agreeing bilaterally to tax kerosene today.
The analysis details the legal and economic viability of implementing kerosene taxation in Europe, through bilateral taxation agreements – as a first step to reaching agreement on an EU-wide tax. The briefing summaries T&E’s recommendations on how to implement kerosene taxation today, based on findings from an expert study, Taxing Aviation Fuel in Europe. Back to the Future?, which is also available below.
In one scenario, a tax agreed by Germany, France, Italy, Spain, the Benelux and the EU Nordics could cover 59% of pollution from flights within Europe and raise up to €3.7 billion per year. This suggests that a series of bilateral tax agreements focusing on the top intra-EU emitters offers an immediate pathway to introducing fuel taxation in Europe.
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