IATA’s Walsh blasts Germany for ‘unhealthy obsession’ with aviation taxes

IATA has blasted the German government for a rise in aviation taxes that went into effect on 1 May. The tax increase of about 19% is being levied on passengers departing German airports. Depending on the route, that will raise the tax to between E15.53 and E70.83 ($16.63 and $75.85) per passenger per flight, IATA said on 2 May. Previously, the passenger tax had been between E12.73 and E58.06 per person per flight. That added surcharge will “weaken the German economy and damage aviation’s ability to decarbonise”, the international airline association says. “When Germany’s economic performance is anaemic at best, denting its competitiveness with more taxes on aviation is policy madness,” IATA director general Willie Walsh states. “The German government appears to have an unhealthy obsession with aviation taxes.” The surcharge will not only hinder the country’s post-Covid-19 recovery, which, IATA says, is already one of the slowest in the European Union, but also slow the industry’s move to decarbonisation. The government announced the increase in January, and is counting on an additional E400m this year in order to plug a hole in its budget. In future years, it hopes for annual proceeds as high as E580m. In addition to this passenger tax, the German government appears to be in favour of a European jet fuel tax which will make it even more expensive to do business in Germany or for families to travel, IATA adds.<br/>