GERMANY DETAILS PLANNED AVIATION TAX RAISE

The German government has released the details for its proposed aviation tax increase, scheduled to be implemented on April 1, 2020.

 

Germany earlier announced it is increasing the tax on the cost of plane tickets in a bid to reduce CO2 emissions.

 

The Centre for Aviation (CAPA), said air traffic tax for Intra European destinations will increase by 5.53 (US$6.16) to 13.03 (US$14.50)per passenger.

 

For medium-haul destinations up to 6000km (3728 miles), taxes will increase by €9.58 (US$10.66)to €33.01 (US$36.74); and for long haul flights, taxes will increase by €17.25 (US$19.20) to €59.43 (US$66.15).

 

Effectively, the tax increase is expected to increase by around 28%, affecting all fare types from domestic to long-haul destinations.

 

 The increase is expected to raise €785 million annually in additional revenue for the Germany government.

 

Meanwhile, the government will reduce the VAT on long-distance rail tickets from 19% to 7% from 2020.