Taxing aviation fuel in Europe

As this study and briefing explain, it is a misconception that ICAO’s Chicago Convention prohibits the taxation of aviation fuel; it disallows taxing fuel already on board an arriving aircraft only, but it says nothing about taxing fuel taken on board prior to departure. Rather, it is intergovernmental air services agreements which often prohibit kerosene from taxation, though this prohibition is being progressively removed from air service agreements for intra-EU flights. Some foreign carriers remain covered by this exemption, however a just released study shows that that this regulatory hurdle can be overcome by including a de minimis exemption.