THE Netherlands and France are trying to convince fellow European nations to end tax exemptions on plane fuel and tickets in the latest drive to make the EU carbon neutral by 2050.
This could lead to passengers paying more for their flights.
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The proposal was put forward at a conference in The Hague, taking place yesterday and today, discussing ticket taxes, kerosene levies and VAT on air travel.
The Netherlands wants to agree on steps towards ending the near complete lack of taxation on air travel and France is also pushing for an end to tax breaks on jet fuel, as European leaders discuss carbon neutrality at a separate summit in Brussels.
The goal is to present conclusions to the new European Commission, which will be sworn in this autumn.
If no EU deal is found, the Netherlands plans to introduce a €7.50 (£6.69) ticket tax for departing passengers from 2021.
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The conference organisers hope that higher taxes will lead to changes in consumer behaviour, with fewer people flying and choosing less carbon-intensive transport options instead.
Research has shown that if the price of air travel goes up by one percent, demand will likely fall by about one percent, according to IMF tax policy division head Ruud De Mooij.
He said: “Airline travel is nearly entirely exempt from all tax, despite having many externalities of its own. Ending its undertaxation would level the playing field versus other modes of transport.”
The EU report shows that just six out of 28 EU member states levy ticket taxes on international flights, with Britain’s rates by far the highest at about €14 (£12.48) euros for short-haul economy flights and up to €499 (£444) for long-haul business class.
French ticket taxes are as low as €1 (89p) for short-haul economy and €45 (£40) for long-haul business class, while EU-wide the average weighted tax per passenger is around €11 (£9).
Friends of the Earth estimates that between 1990 and 2016, aviation emissions more than doubled, while overall emissions fell by 43 per cent.
The tax could also push travellers to use cars and trains instead, as a kerosene levy could be the quickest way to restore the tax imbalance that has given plane travel a huge cost advantage over cars and trains, activists say.
Last month, the government discussed plans for a Frequent Flyer Levy for passengers who take more than one flight a year.
While passengers could take one tax-free flight a year, the levy would be added to any other flights and would increase on each flight.
In January, it was suggested that Air Passenger Duty could increase as well as a the Frequent Flyer tax, resulting in flights increasing by more than £200.
