EU, towards suspending taxes on aircraft and ships/ New proposal foresees maintaining tax exemptions until 2035
European Union countries are considering a 10-year suspension of aviation and maritime fuel taxes, according to a preliminary document.
The European Commission proposed a review of energy tax rules in 2021, amid efforts to curb climate change. The proposal included the gradual introduction of taxes on polluting fuels used in aviation and maritime transport within the 27-nation bloc, sectors that are currently exempt from the EU's minimum measures.
But many countries resisted the changes, and a 10-year delay is now being considered during which jet and ship fuels would continue to be exempt from taxation, according to a draft negotiating proposal from the bloc.
“In 2035, the Commission should examine the possibility of taxing air and maritime transport, and propose amendments to this Directive, if it deems it appropriate,” the document says. EU member state negotiators are expected to discuss the compromise on Friday at a meeting in Brussels.
According to the draft, only small aircraft with a maximum of 19 seats and personal watercraft could face taxes before 2035. The exemption is intended to "preserve the competitive position of Union companies," the document says.
The EU currently imposes minimum taxes on other fuels such as electricity and diesel. Climate activists have long called for tax changes that favor cleaner fuels over more polluting and less efficient ones. But changing fiscal policies in the EU is notoriously difficult, requiring unanimous approval from all member states.
According to European diplomats, countries with large maritime transport sectors and those dependent on tourism have opposed the changes.
The latest document was drafted by Denmark, which currently holds the rotating EU presidency. A spokesman for the country said the aim is for member states to reach an agreement on tax changes by November.
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