How A Jet Fuel Tax Would Impact European Airlines

A jet refuelling truck

The European Commission could soon push for an EU-wide jet fuel tax. Jet fuel is currently exempt from fuel tax within the EU, but the ever-present issues of carbon emissions and climate change are making a potential jet fuel tax more and more appealing.

Unlike other fuels, jet fuel is still untaxed tax in the EU. In fact, globally, jet fuel holds a tax status which is rather unusual compared to other types of fuel.

Although EU member states are currently allowed to tax jet fuel used in domestic aviation, none do.

Airlines with more fuel-efficient fleets and higher passenger load factors would feel much less of an effect from jet fuel taxation. If foreign airlines continued to pay no tax on their jet fuel, EU airlines would immediately find themselves at a disadvantage.

Collected and summarized from the source below by Minh Pham