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EU to charge higher taxes for polluting aviation fuels

Aviation Updates Philippines – The European Commission plans to introduce an EU-wide minimum tax rate for polluting aviation fuels to encourage airlines to switch to more sustainable fuels amid a worsening global climate crisis.

Photo by Tim Dennert on Pexels
The new tax policy is part of the European Commission's so-called "Fit for 55" legislative package, which aims to reduce EU carbon emissions by 55% from 1990 levels by 2030.

According to Reuters, the minimum tax rate for aviation fuels will start at zero in 2023 and will gradually increase in the next ten years until the full rate is imposed. The additional taxes will be based on the fuel's energy content and environmental impact, which means that polluting fuels would become more expensive.

Sustainable fuels, meanwhile, will be exempt from the minimum tax rate throughout the entire ten-year period. Cargo-only flights, "pleasure flights," and "business aviation" will also be exempted, though individual EU member states may choose to tax these flights' fuel on a national basis.

Similar measures are also expected to be introduced for polluting fuels used for waterborne cargo, fishing, and navigation transport within the EU.

The European Commission has not publicly commented on the contents of the proposal as they are still subject to change.

The "Fit for 55" legislative package is set to be formally launched by the Commission on July 14.

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