IATA slams German tax grab

BTN News
Friday, 03 May 2024

The International Air Transport Association (IATA) has criticised the May 1 increase in German aviation taxes, saying they will weaken the German economy and damage aviation’s ability to decarbonise. 


German taxes on flying have increased by 19 per cent to between EUR15.53 and EUR70.83 per passenger, depending on the route. 

The tax will make Germany less competitive in key economic areas such as exports, tourism and jobs, IATA says - and it will further affect Germany’s slow air transport recovery from the pandemic.

Germany’s international passenger numbers, for example, are still 20 per cent below pre-pandemic levels.  

"The German government should be prioritising measures to improve its competitive position and encouraging trade and travel. Instead, they have gone for a short-term cash-grab which can only damage the economy’s long-term growth," said Willie Walsh, IATA’s director general. 

IATA also says the tax increase will hamper the industry’s efforts to decarbonise. Aviation has a goal of reaching net-zero CO2 emissions by 2050 and sustainable aviation fuels (SAF) are vital to this effort. The German government coalition agreement originally stated that revenues from aviation taxes would directly fund production of SAF, but "this commitment has been broken", IATA claims. 

In addition, IATA says weakening the German air transport industry with this tax makes it harder for airlines to invest in SAF, in a more fuel-efficient fleet and other decarbonisation efforts.  Furthermore, the German government appears sympathetic to the European Taxation Directive, which would add a tax on jet fuel.

"The German government appears to have an unhealthy obsession with aviation taxes. On top of increasing the passenger tax, it is also in favour of a European jet fuel tax which will make it even more expensive to do business in Germany or for families to go on holiday. 

"Our survey of air travellers in Germany shows deep skepticism about government claims for ‘green taxes’. 75 per cent agreed with the statement 'Taxation is not the way to make aviation sustainable' and 72 per cent agreed that 'Green taxes are just government greenwashing'. Time and again, we see taxation that was supposed to help the industry decarbonise be stolen and then lost in the general budget. And money taken out of the industry means that it has less money to invest in other decarbonisation measures,” said Walsh.

IATA slams German tax grab

BTN News
Friday, 03 May 2024

The International Air Transport Association (IATA) has criticised the May 1 increase in German aviation taxes, saying they will weaken the German economy and damage aviation’s ability to decarbonise. 


German taxes on flying have increased by 19 per cent to between EUR15.53 and EUR70.83 per passenger, depending on the route. 

The tax will make Germany less competitive in key economic areas such as exports, tourism and jobs, IATA says - and it will further affect Germany’s slow air transport recovery from the pandemic.

Germany’s international passenger numbers, for example, are still 20 per cent below pre-pandemic levels.  

"The German government should be prioritising measures to improve its competitive position and encouraging trade and travel. Instead, they have gone for a short-term cash-grab which can only damage the economy’s long-term growth," said Willie Walsh, IATA’s director general. 

IATA also says the tax increase will hamper the industry’s efforts to decarbonise. Aviation has a goal of reaching net-zero CO2 emissions by 2050 and sustainable aviation fuels (SAF) are vital to this effort. The German government coalition agreement originally stated that revenues from aviation taxes would directly fund production of SAF, but "this commitment has been broken", IATA claims. 

In addition, IATA says weakening the German air transport industry with this tax makes it harder for airlines to invest in SAF, in a more fuel-efficient fleet and other decarbonisation efforts.  Furthermore, the German government appears sympathetic to the European Taxation Directive, which would add a tax on jet fuel.

"The German government appears to have an unhealthy obsession with aviation taxes. On top of increasing the passenger tax, it is also in favour of a European jet fuel tax which will make it even more expensive to do business in Germany or for families to go on holiday. 

"Our survey of air travellers in Germany shows deep skepticism about government claims for ‘green taxes’. 75 per cent agreed with the statement 'Taxation is not the way to make aviation sustainable' and 72 per cent agreed that 'Green taxes are just government greenwashing'. Time and again, we see taxation that was supposed to help the industry decarbonise be stolen and then lost in the general budget. And money taken out of the industry means that it has less money to invest in other decarbonisation measures,” said Walsh.