Tax exemptions and reductions for domestic commercial air passenger transport in France
Like in many other countries, commercial aviation enjoys a favourable fiscal regime in France. Fuel used for commercial aviation is exempted from energy taxation and will also be exempted from the national carbon tax. In addition, the tickets of air passengers are subject to a reduced Value Added Tax rate, a benefit that is enjoyed by other modes of public transport too.
This study focusses on the fiscal regime for domestic commercial air passenger transport in France, including the transport to and from the overseas departments. It quantifies the forgone tax revenues for the period 2008-2011 and assesses the impacts of an abolishment of the exemptions from the energy and carbon taxation and of the VAT reduction for the period 2015-2018.