Aviation organization opposes planned Dutch tax policy
European aviation trade bodies are concerned about the planned taxation policy by the Dutch Government. In the open letter addressed to the Dutch Minister of Finance they argue that “ineffective government taxation” will hinder the aviation industry.
The policy in question is intended to use taxation in order to address the environmental impact aviation has in addition to a tax on noisy and polluting aircraft, which is also under consideration. If both measures are determined to be insufficient, an aviation passenger tax may be introduced in the Netherlands from 2021.
In a joint letter to the Dutch Minister of Finance industry associations ERA, IATA, AIRE, AFRAA, A4A, AACO, AAPA, ALTA and NACC urge the Dutch Government not to proceed with its planned taxation policy, as it contradicts international policies and laws and would have a negative impact on the Dutch economy.
The associations argue that previous air passenger taxes had a negative impact both in the Netherlands and other European countries. They also note that if accepted, the Dutch tax would duplicate the Global Market-Based Measure adopted by ICAO in 2016 to address emissions from international aviation. “The ICAO Assembly Resolution stipulates that CORSIA is to be the sole market-based measure applying to CO2 emissions from international aviation”, the associations argue in the letter, also noting that “intra-EU flights are subject to the EU Emissions Trading Scheme, in which airlines already pay their contribution towards reducing the environmental impact”.
Before making the final decision on the policy, the Dutch Government is urged to commence an independent evaluation of the economic and environmental impact of the policy and to conduct a public consultation process as an “absolute minimum”.
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