EU jet fuel tax delayed
An EU tax on jet fuel has been kicked into the long grass after international aviation talks in Montreal.
Good so we can travel freely for a couple more years yet.
EU capitals had wanted to keep an open door to taxes and charges in a bid to reduce greenhouse gas emissions. Incoming EU transport chief Jacques Barrot indicated recently that the issue of a European kerosene tax could be re-examined. The French commissioner said the environmental impact of air transport and distortions in competition meant that there may be a case for a "low rate of tax on intra-community flights" not exposed to international competition.The part of this that really caught my attention was - distortions in competition - a phrase which means this:
- We tax land transport very heavily
- We don't tax air transport (Although what are airport taxes?)
- In order to level the playing field, we need to tax air travel more heavily
They live in a strange parallel universe where the answer to one mistake is to make another. This is the reason that harmonisation of taxes must be fought until the last breath.
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