Green taxes

Taxing air transport has no positive impact on the environment – and brings a detrimental effect on jobs, competitiveness, and the economy.

Environmental issues are at the top of the aviation industry’s agenda, alongside safety and security.

In accordance with ICAO’s Policies on Charges for Airports and Air Navigation Services, any noise- or local air quality-related levy should be imposed only at airports experiencing demonstrated noise or local air quality problems. Moreover, such a levy should be in the form of a charge rather than a tax and designed to recover no more than the costs applied to alleviate or prevent the targeted noise or local air quality problems.

There is an increasing trend to tax passengers and airlines for the environmental impact of air travel. While the stated goal of such taxation is laudable, it has proven to be an ineffective policy choice as it negatively impacts passengers, airlines, the broader tourism sector, and the governments’ budget – while weakening the airlines’ ability to invest in broader sustainable practices, policies and technologies.