European airlines to pay more aviation fuel taxes?

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The European Commission (EC) has drafted a document that reportedly shows the EU body is planning an overhaul of aviation fuel taxation. The move comes as the European Commission seeks to reduce EU greenhouse emissions by 55% by 2030. 

The European Commission document draft, seen by Reuters on July 4, 2021, reportedly shows that the EU regulator plans to impose an “EU-wide minimum level of tax rate” for polluting aviation fuels from 2023. 

As part of climate action measures the EC will propose on July 14, 2021, the minimum aviation fuel tax rate would start at zero and would gradually increase in a 10 years period, according to a draft document. The draft document did not specify what the aviation fuel tax rate would be. 

The news on EU-wide aviation fuel taxation might not be heart welcoming for European airlines that have been suffering from the ongoing pandemic. Earlier in June 2021, a report prepared by an investor-led climate lobbying watchdog, InfluenceMap, indicated that European airlines with the largest disclosed carbon dioxide emissions were pushing against European aviation climate policies. The aviation industry’s efforts against taxation came as the European Commission readied to introduce a climate package in mid-July 2021.  


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