13-Mar-2018 11:16 AM

European Commission: Taxes impact short haul services more than long haul

European Commission published (12-Mar-2018) a case study on "the burden of taxation and charges on transport". Key findings for aviation include:

  • The "fiscal burden" for air travel is significantly higher for medium distance trips than for long distance trips. On medium distance corridors, such as Paris-Amsterdam and Hamburg-Prague, the fiscal burden may be up to EUR0.09 per passenger kilometre, which is higher than passenger cars on those corridors. Long distance corridors such as Lisbon-Antwerp could see the burden as low as EUR0.02 per passenger kilometre. In general, the burden on aviation is higher on national corridors than international, as domestic services are not exempt from VAT;
  • Road and aviation freight incur the highest external costs, but aviation is by far the fastest means of transport. [more - original PR]

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