German Aviation Tax Under Scrutiny
German Aviation Tax Under Scrutiny
3 September 2010German passenger carriers are in uproar following government plans to implement a new aviation tax as of 1 January 2011. This includes aeroplane tickets booked from today.
"We are implementing the measure with immediate effect following today's Cabinet resolution. Otherwise, there will be a rush in ticket-buying aimed at pre-empting the tax," said Finance Minister, Wolfgang Schaeuble.
The charge will add a levy of €8 to 52 European destinations, €25 to 50 airports in Asia and Africa, and €45 to all other destinations.
The tax was met with hostility from Lufthansa and Air Berlin - the country's two largest carriers.
In a statement Lufthansa said that the aviation tax would put the airline at a serious disadvantage as "unilateral action will weaken Germany as a base for the aviation industry, and will massively distort competition."
Management spokesman for Germanwings, Thomas Winkelmann, agreed that the flight levy will create a major distortion of competition for German airlines, draining economic power and displacing it into neighbouring countries.
"It places jobs at risk, restricts people's mobility and acts as a brake on economic recovery in our country. The winners with this new levy are the airports in Holland, Belgium, Poland and Switzerland," he said.
ABTA head of public affairs, Luke Pollard, also argued that, "The introduction of this tax is a seriously regressive step that will impact on UK visitor numbers to Germany and Germans coming to the UK."
He added, "The German government has previously stated that this tax would be a temporary measure and abolished in 2012 when the EU's Emission Trading Scheme comes into effect and we will be writing to obtain confirmation that this is still their intention."
The new flight levy was introduced ahead of a proposed budget designed to reduce government's €80 billion deficit.
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