Policy     Economics     Technologies

Estimated revenues of VAT and fuel tax on aviation

International aviation is exempt from VAT, both on their inputs (e.g. on fuel or aircraft) and on their revenues (e.g. on tickets). In the EU, aviation fuel is also exempt from the minimum fuel excise tariffs.

This report calculates the potential revenues of VAT on tickets and fuel tax on jet fuel. If VAT were to be levied on tickets while other aviation taxes were simultaneously abolished, this would yield revenues in the order of EUR 7 billion. Excise duty on jet fuel would raise revenues in the order of EUR 20 billion.

These figures do not take into account the impact of the cost increases on demand for aviation into account. Since higher costs will reduce demand, the estimates can be considered an upper bound.

The report was commissioned by Transport and Environment.

Authors CE

Jasper Faber
Marisa Korteland

Delft, July 2013

Estimated revenues of VAT and fuel tax on aviation

 

Tweets by @cedelft

Waarom kiezen voor de planeconomie? Column Frans Rooijers over Klimaat- en Energieakkoord #energieakkoord op Energi… https://t.co/S4PPQTlB8z
13-12-2017 09:55

Article - Evaluating the environmental impact of debit card payments https://t.co/IfnNwC3p0b
07-12-2017 16:23

Rapport Net voor de Toekomst - scenario's voor investeringskeuzes van netbeheerders in infrastructuren https://t.co/W4mUsLCuZ0
07-12-2017 16:04

Gezamenlijke visie om Omgevingswet, regionale energiestrategie en warmtetransitieplan lokaal gelijk te gebruiken… https://t.co/YwHhzl338d
06-12-2017 16:30

Position paper @CEDelft t.b.v. hoorzitting/rondetafelgesprek Kunststofketen en zwerfafval Tweede Kamer d.d. 30 nove… https://t.co/fLEooSyZL6
30-11-2017 12:32