EU Treasury Ministers support future tax on fossil aviation fuel…

eu-treasury-ministers-support-future-tax-on-fossil-aviation-fuel…

EU Treasury Ministers support future tax on fossil aviation fuel…

EU Treasury Ministers support future tax on fossil aviation fuel (after decades)
2021-05-24 19:55:00
For decades, there has been no international agreement on the taxing of aviation fuel, and it has been wrongly assumed that taxing it was impossible. But now the EU is considering how the fuel should be taxed, as part of the bloc’s attempts to cut carbon emissions over all its activities.  The EU now has the target of a 55% cut in CO2 emissions by 2030, and reach “net zero” by 2050.  Aviation must play its part in the reductions.  Higher fuel prices would increase ticket prices, thus reducing slightly demand for air travel.  In July, the European Commission will put forward an overhaul of its energy taxation directive that sets minimum taxation rates for fossil fuels, but has not been updated for nearly 20 years. There have been difficulties in getting agreement on carbon cuts from the newer EU members, and every country effectively holds a veto on taxation policy.  Some countries such as the Netherlands have been pushing for aviation fuel taxation, and says it will introduce a national aviation tax in the absence of an EU-wide agreement.  Aviation should also be charged through the EU Emissions Trading System, which currently only adds small costs to intra-European flights. .Tweet   EU targets aviation with renewed fossil fuel levy 22.5.2021 (Eminetra) The EU is approaching an air tax agreement as part of an extensive reform of fossil fuel levies to help meet ambitious emission targets. The EU Treasury Ministers’ Meeting in Lisbon on Saturday expressed broad support for future proposals for a European-wide tax on kerosene jet fuel used in aircraft, officials told the Financial Times. Brussels has struggled to extend its fuel tax rules to areas such as aviation and maritime affairs, but will reduce EU carbon dioxide emissions by 55% over the next decade to net zero by 2050. The cause was rekindled by the block’s efforts to do. The pandemic aviation industry had previously expressed concern about EU kerosene tax plans. In July, the European Commission sets a minimum tax rate for fossil fuels and proposes a major overhaul of the Energy Tax Directive, which has not been updated for nearly 20 years. The change agreement has been hampered by the need to obtain unanimous agreements from all 27 member states. Brussels has indicated that it will extend its tax rules to sectors such as aviation and maritime, which are exempt from the system. However, EU Treasury Ministers have weakened their support for the expansion of the directive to shipping, and European geographic neighbors have expressed concern about the plan, officials said. The revision of the Energy Taxation Directive will be one of the most politically sensitive parts of Brussels’ Green Deal Agenda, as virtually every country has veto power over taxation policies. Valdis Dombrovskis, EU Vice-Chairman of Economic Affairs, said the directive was “obsolete” and that ministers expressed “the right political momentum to make a difference.” Portugal’s Treasury Minister João Leão, who chaired the conference, said his country had helped expand into the maritime and aviation sectors to help achieve the EU’s ambitious environmental goals. Some EU member states are leading accusations to end jet fuel tax exemptions, and the Netherlands has promised to introduce national aviation taxes without EU-wide agreement. The Brussels renewal also aims to eradicate the exemptions that many member states provide to sectors such as agriculture, the coal industry and diesel. The Commission is also considering a stricter system in which the minimum fuel tax will be raised over a decade, official

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