Germany doubles aviation tax, imposes minimum fare rule
Germany’s coalition govt has agreed to double the country’s short-haul aviation tax and impose a minimum fare rule in 2020. After marathon negotiations, the govt decided to double the current E7.38 (US$8.17) tax per passenger departing from German airports, effective Jan 1, 2020. The additional revenue is to be used to finance a reduction of the VAT on train tickets from the current 19% to 7%. The moves come as the country struggles to achieve its 2030 emissions reduction targets. Germany’s aviation tax—with separate rates for short-, medium- and long-haul flights—currently costs the industry E1.2b annually. Industry sources say the new increase will cost it another E600m. Lufthansa expects additional costs of E250m. There appear to be no plans to increase the medium- and long-haul tax rates. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-09-23/general/germany-doubles-aviation-tax-imposes-minimum-fare-rule
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Germany doubles aviation tax, imposes minimum fare rule
Germany’s coalition govt has agreed to double the country’s short-haul aviation tax and impose a minimum fare rule in 2020. After marathon negotiations, the govt decided to double the current E7.38 (US$8.17) tax per passenger departing from German airports, effective Jan 1, 2020. The additional revenue is to be used to finance a reduction of the VAT on train tickets from the current 19% to 7%. The moves come as the country struggles to achieve its 2030 emissions reduction targets. Germany’s aviation tax—with separate rates for short-, medium- and long-haul flights—currently costs the industry E1.2b annually. Industry sources say the new increase will cost it another E600m. Lufthansa expects additional costs of E250m. There appear to be no plans to increase the medium- and long-haul tax rates. <br/>
