Growing Tax Attack on Aviation

Debt-laden governments continue to look to increase taxes and charges on aviation.

• In the USA, IATA and A4A (Airlines for America)* have been actively lobbying against President Obama's debt-package, which could potentially burden our industry with $1.5 billion a year in new taxes and charges.
• We are closely monitoring the European Commission’s proposals to impose VAT on intra-EU passenger air travel. 
• Amid proliferating proposals for “tourism development taxes”, IATA is also highlighting the detrimental effect of taxes on aviation as a key economic driver.
• Following the frustrating 8% increase in UK APD from April 2012, IATA is focusing its campaign on the next UK budget in March 2012.

Tax Campaign Successes

A number of IATA campaigns came to fruition in 2011:

• Following industry lobbying and action, the newly elected Danish government renounced its plans to introduce a passenger transportation tax.
• Similar opposition to a proposed tourism tax in Iceland saw the measure being defeated in Parliament.
• A reshuffling of various ticket taxes in the Bahamas resulted in a net decrease.
• IATA and A4A joint action led to US APHIS’ decision to postpone new rates for APHIS fees to 2013, preventing additional cost increases for another year.
• Recognizing falling passenger numbers, the Irish Ministry of Finance reduced its Air Travel Tax earlier this year

2012 Strategy: Benefits of Aviation Campaign

• Our battle against the tax attacks will expand and strengthen in 2012.
• “The Benefits of Aviation” country reports, produced by Oxford Economics, will be used as a tool for campaigns with other aviation stakeholders and beneficiaries to fight against ill-considered taxes across the globe. Using examples where governments have repealed aviation levies due their negative impact on traffic, we will continue to underline the potential adverse impact of taxes on the industry and economic growth.
• We will continue to build on our message to ensure governments better understand and appreciate the economic benefits of aviation.

 More at www.benefitsofaviation.aero

* Formerly Air Transport Association of America (ATA)