Private & Corporate jets to escape EU’s ‘green’ aviation fuel tax
EU to exempt private and corporate jets from green aviation fuel tax.
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— James Melville (@JamesMelville) June 6, 2022
Executive jets will escape plans to tax polluting aviation fuels, according to draft proposals to be presented by the European Commission on Wednesday.
The commission plans to set an EU-wide minimum tax rate for aviation fuels, as it seeks to meet more ambitious targets to fight climate change.
A draft of the commission’s tax proposal takes aim at aviation, which escapes EU fuel taxes.
That exemption “is not coherent with the present climate challenges and policies,” the document said, adding that EU tax rules promote fossil fuels over green energy sources and need rewriting to support the bloc’s climate goals.
The proposal would impose an EU-wide minimum level of tax on energy products supplied as aircraft fuel for flights within the EU.
From 2023, the minimum tax rate for aviation fuel would start at zero and increase gradually over a 10-year period, until the full rate is imposed. The draft proposal did not specify what the final rate would be.