The introduction of a European aviation tax seems likely to be postponed for at least several years following last week’s debates on the scale and financing of a European corona recovery plan.
Due to the near standstill of international air traffic, more and more airlines are facing severe financial difficulties and are already seeking financial support from their governments. Only the Netherlands has recently extended its plans to introduce a new tax of €7, despite requests from the aviation sector to pause due to the current COVID-19 situation.
Other EU countries have postponed concrete decisions on the matter. The tax applies to all flights to all destinations and is set to take effect from the beginning of next year.
Promotion
Prior to the vote, the Dutch government sent a letter to parliament pointing out the financially uncertain times for the aviation industry. This raises the question of what this means for the introduction of the proposed Dutch aviation tax on January 1, 2021. These plans also consider the possibility of replacing the Dutch law with an EU-wide flight tax. It also means that a later implementation is possible in the Netherlands.
At this moment, the aviation industry is particularly affected by the current pandemic. As airlines reduce their operations, some companies may not survive and others will have to cut staff. According to many, a new aviation tax is even less welcome than before.
KLM is not in favor of new taxes “because they do not help the environment,” said a spokesperson. The German airline Lufthansa agrees. A spokesperson for easyJet said this is clearly not the time to introduce a new aviation tax. According to Airlines for Europe (A4E), such taxes will divert funds that airlines need to invest in future sustainability initiatives.
“Given the COVID-19 crisis, it is hard to understand why the Dutch government is proceeding with this,” said Thomas Reynaert, director of A4E. “I cannot imagine this measure will be seen as popular under the current circumstances by both the European Commission and other national governments who are doing their utmost to support the aviation sector,” Reynaert told the European news site Euractiv.