Even though it seems incredible, the aviation (causes significant greenhouse gas emissions) practically does not pay taxes on polluting activitiesunlike what happens in other transport sectors such as private cars. While this results in unequal treatment that has been condemned many times, it also Loss of an important source of income in the fight against climate change, As just announced by international conservation organization Transport & Environment.
Special, European governments lost €34.2 billion in revenue last year According to a recently published study by this organization, due to the very low levels of taxes in the aviation industry. With this 34.2 billion euros (equivalent to around 4 million per hour) 1,400 kilometers of high-speed rail infrastructure can be financed; which is much less polluting than aviation.
The industry does not pay kerosene taxThere is little or no ticket tax or VAT, and you only pay carbon charges on intra-European flights.
The study analyzes the revenue that would be generated from air travel if the industry did not benefit from these controversial exemptions. The authors compare this final revenue to the revenue actually collected in a year.
Spain among those who lost the most money
If aviation were properly taxed, the UK and French governments would raise an additional €5.5bn and €4.7bn, according to the T&E report. The four European countries with the largest fiscal deficit United Kingdom, France, Spain and GermanyThis is in line with the size of the aviation sectors. Although France, Germany and the United Kingdom impose taxes on banknotes, this small amount is irrelevant.
Air France and Lufthansa are two best examples of this lack of revenue due to the size of their air operations. Europe lost between 2,400 and 2,300 million euros in revenue from the activities of these airlines.
Study distinguishes between taxes on passengers and airlines. While ticket taxes and VAT are charged to passengers, fuel taxes and carbon pricing are directly attributable to airlines. 34.2 billion euro deficit Shippers had to pay 20.5 billion euros in fuel taxes and carbon prices.
“Airlines are approaching record profits this year, while dumping dirty fuel into our skies.”
T&E aviation director Jo Dardenne explains: “Europe loses money by not taxing the aviation industry. Airlines are approaching record profits this year as they dump dirty fuel into our skies. But governments are not willing to touch valuable national airlines. How can they justify this to citizens? Car drivers pay more tax on their fuel than Air France and Lufthansa?
If no precautions are taken, this tax gap will increase by 38 percent by 2025 as the sector grows in the coming years. Eurocontrol predicts traffic will reach 92% of pre-COVID levels in 2023 and fully recover in 2025. By then, the tax gap could rise to €47.1 billion, according to T&E.
In the organisation’s view, closing this gap and addressing the lack of adequate aviation tax should be a top priority for governments. Study It recommends a fuel tax on kerosene, a 20% VAT on tickets and an expansion of the aviation carbon market to cover all outbound flights. These changes will help close the gap in government budgets. Until these measures are taken, T&E recommends that a tax be applied to the ticket equivalent to the gap available in each country.
Impact on passenger fares
The study shows that higher taxes will affect the prices of passenger tickets. This Can lead to reduced demand and savings in CO2 emissions. The study concludes that ending the exemptions in 2022 would save 35 Mt CO2; but if aviation’s non-CO2 impacts are taken into account, the climate impact will still be larger.
T&E is the revenue generated through taxes. There should be reinvestment in green technologies for aircraft propulsion.
Jo Dardenne concludes: “Taxes should not be perceived as a penalty but as a way to fairly remunerate those who benefit most from inadequate aviation regulations. Those with a better social position pay little for their flying habits. In addition, taxes will not limit the investment capacity of aviation. Conversely, taxing aviation will benefit citizens and industry in the long term as governments step in to finance the transition to clean energy, including aviation. “It’s time to end the era of cheap flights and rising emissions.”
Reference work: https://www.transportenvironment.org/wp-content/uploads/2023/07/tax_gap_report_July_2023.pdf
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Contact address of the environment department: [email protected]