.jpg?20250115')
European Union countries are considering delaying the introduction of EU-wide taxes on polluting aviation fuels for 20 years, as they seek a breakthrough on tax reforms that have been negotiated for years with little progress, a draft document seen by Reuters showed.
The European Commission proposed an overhaul of energy tax rules in 2021 to make them more climate-friendly, including by gradually introducing taxes on fuels for flights within the 27-nation bloc, which currently escape EU-wide levies.
After countries could not agree on earlier proposals that would introduce a minimum EU tax rate for jet fuel from 2028, they are now considering exempting both aviation and maritime fuels from these taxes for a further 20 years, a draft compromise seen by Reuters showed.
“Since currently there is not enough sustainable alternative fuel (SAF) on the market, the taxation of aviation fuels would result in price increases of air tickets and not in a general switch from fossil fuels to SAF,” the document said.
Only small aircraft with a maximum of 19 seats, and boats used for “private pleasure navigation” would face minimum EU taxes before the 20 years are up, it said.
For other aircraft and vessels, countries can introduce national levies if they choose – but they are not obliged to.
&uuid=(email))