German government looks to roll back tax hike on flights
Airlines have long complained that the charges in Germany - aimed in part to reduce carbon emissions - are among the highest in Europe, harming competitiveness.
'The increase in the air travel tax must be reversed,' said Christoph Ploss, the federal government's tourism coordinator, in an interview with the Bild daily.
'Hard-earned holidays to Mallorca must not become unaffordable,' he added, refencing the Spanish island which is a popular holiday destination.
Germany last hiked the duty in May 2024, with the levy for short-haul flights hitting 15.33 euros (S$22.90), up from 12.73 euros, and that for long-haul routes soaring to 70.83 euros from 58.06 euros.
For comparison, France is planning to increase its tax on economy-class flights to destinations within Europe to 7.30 euros, up from 2.63 euros now.
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Last year's increase under Germany's then-chancellor Olaf Scholz has brought in almost two billion euros since it was imposed but also led to anger from airlines.
Irish budget carrier Ryanair and German rival Eurowings warned late last year that they were considering cutting numerous routes to and from Germany, citing what they called excessive taxation.
Reversing the tax rise as part of the 2026 budget is now being discussed between Germany's ruling coalition parties, the conservative CDU/CDU and the centre-left SPD, Bild reported.
Chancellor Friedrich Merz of the CDU has tried to forge a pro-business course to revive a sluggish economy, introducing tax breaks for business investment and promising to reduce bureaucracy. AFP
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Business Times
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AsiaOne
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Trump has argued that his tariffs are bringing in "hundreds of billions of dollars" in revenues for the US while dismissing warnings from economists about the risk of inflation. On July 12, Trump threatened to apply a 30 per cent tariff on imports from the EU starting on Aug 1, after weeks of negotiations failed to reach a comprehensive trade deal. The EU had prepared countertariffs on 93 billion euros (S$140 billion) of US goods in the event a deal to avoid the tariffs could not be struck. [[nid:720506]]
