16-Aug-2010 12:33 PM

Germany revises plans for air travel tax

Germany's Government has reportedly revised its plans to implement a three-tier tax on air travel, increasing the proposed tax on long-haul services (Dow Jones, 13-Aug-2010). The government now plans to impose a tax of EUR8 for short-haul flights, instead of EUR9 for European flights and services to Libya, Morocco and Tunisia. The government still plans to impose a EUR25 levy on medium-haul flights but has increased the proposed tax on long-haul flights from EUR40 to EUR45. The plan is yet to be finalised by Finance Minister Wolfgang Schaeuble, Economics Minister Rainer Bruederle, Transport Minister Peter Ramsauer and Environment Minister Norbert Roettgen. The Economic Ministry reportedly wants the tax to be only temporary, but the Finance Ministry plans to make it permanent. A draft bill is to be put to cabinet on 01-Sep-2010.

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