Frankfurt (Germany) (AFP) – Germany’s government signalled Monday that it may reverse a rise in the tax applied to passenger flights as it steers a pro-business turn in Europe’s top economy. 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, referencing 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 ($17.88), 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.
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.
© 2024 AFP
