By Brian Johnson - 18th February 2005
Support for an EU aviation fuel tax to finance aid for the world’s poorest nations is not motivated by any genuine environmental concern, according to budget airline easyJet.
EasyJet accused EU finance ministers, meeting in Brussels on Thursday, of using “smokescreens” as an excuse to beef up tax revenues by levying an EU wide tax on jet fuel.
“The agenda being pushed is not motivated by genuine international or environmental concerns but rather the opportunity of introducing a pan-European tax,” said the airline in a statement.
“What baffles me is the agenda being pursued at the political level. If the aim is truly to levy new forms of aid to poor countries, then surely a more profitable source of revenue should be the target of an EU wide tax,” said EasyJet chief executive, Ray Webster.
“My concern is that the political discussions around airline fuel smack of taxation through the back door more than anything else.”
And EU finance ministers clashed on Thursday, when they discussed the topic, which was originally tabled by French President Jacques Chirac at a G7 meeting earlier this month.
Austria’s finance minister, Karl-Heinz Grasser called for an airline fuel tax that would fund both development aid and the EU’s budget.
"I would prefer to finance Europe through a kerosene tax, that the population will not really notice because it goes through plane tickets, than financing Europe through a measure that will really impact on people,” said Grasser according to a Reuters report.
But increasing the scope of the tax was immediately criticised by Germany’s finance minister, Hans Eichel. “I advise against broadening the discussion,” he said.
Support for an airline fuel tax to finance development aid was initially strong in France and Germany, though earlier this week, the French transport commissioner, Jacques Barrot appeared to tone down his prior strong support.
And a number of countries, including Ireland, Spain Greece and Italy are opposed to the idea which could see ticket prices rise by €10.
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