Industry attacks ‘unreal’ call for EU air tax

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By Bruno Waterfield
- 3rd July 2006

Industry has accused MEPs of ignoring “reality” by demanding sweeping taxes to tackle greenhouse gas emissions from aviation travel.

The European parliament has demanded immediate eco-taxes on air travel within the EU, just as many people prepare to jet off to Europe’s beaches.

International Air Carrier Association director Sylviane Lust told the parliament to get real if MEPs seriously wanted to fight climate change.

“Any approach to aviation and the environment which calls for the simultaneous introduction of taxes on aviation fuel, VAT on airline tickets, environmental charges at airports and emissions trading scheme totally ignores economic realities,” she said.

“Moreover the recommendation to set up a separate ETS scheme for aviation is totally unrealistic.”

“No assessment has been made of the consequences for the airline industry, the European economy or the quality of life of European citizens.”

The parliament has backed, with a large majority, proposals to hike the price of air travel in a bid reduce climate change.

MEPs voted by 439 votes, 74 against and with 102 abstentions, to push the EU into taking a world lead on aviation emissions.

In a non-binding decision, the parliament urged the European commission to slap taxes on all flights within the EU.

To prevent the collapse of Europe’s airlines, MEPs included the option of possible exemptions on routes where US or non-EU carriers compete with European companies.

The parliament is pressuring the European commission to pilot aviation taxes globally and to scrap VAT exemptions on air fuel.

Aviation taxes would see price rises to a European aviation industry where low fares have seen rapid expansion.

Green MEP Caroline Lucas insists that the parliament’s proposals are necessary to keep global climate change efforts on track.

“Between 1990 and 2003, the EU’s international aviation emissions increased by 73 per cent,” she told the parliament.

“At this rate the increased emissions from aviation will neutralise more than a quarter of the reductions required by the EU’s Kyoto target by 2012.”

To offset the negative impact MEPs have hardwired concessions for the EU’s most isolated territories where there are few alternative to air travel.

The commission is currently looking at ways to cut global warning gas emissions from the aviation sector.

One possibility is to include the air industry inside an existing emission trading scheme that rations the climate change gases from industry within an allowances system.

MEPs have asked the commission to consider a separate dedicated scheme for aviation emissions not covered by international climate change agreements.

Parliament suggests a trial scheme to run from 2008-2012.

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