Taxing aviation fuels in the EU

This paper analyses the taxation of aviation fuels in EU Member States on intra-EU flights. Its main focus is the legality of these taxes and it also provides estimates of the potential revenues.

The legal analysis shows that it appears to be possible for EU Member States to tax aviation fuels on flights between them even when non-EU carriers are enjoying a mutual exemption from fuel tax operate on those routes. There are several ways to minimise the chances that a legal challenge by these carriers would be successful. The most promising option seems to be the introduction of a de minimis threshold.



Aoife O'Leary; With a contribution by Pablo Mendes de Leon

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