The European Commission is set to propose EU-wide minimum taxes on kerosene, the fuel for planes, as part of their EU energy taxation plans to meet the new eco 2030 targets. However, it remains to be seen if this tax will be agreed by all member states, as taxation issues require unanimity.
A leaked draft from the Commission proposes a minimum tax on flights inside the EU. Freight flights are to be exempted, so as not to give a competitive advantage to non-EU competitors, which could be seen as a muddled approach to satisfy too many objectives at once. And there are alternatives, such as including aviation companies in the CO2 emissions trading.
Taxes are the prerogative of member states, though the EU can set minimum rates
Why do planes not have to pay taxes on their fuel? The tax-free fuel for planes goes back to the Chicago Agreement of 1944, which intended to help the aviation business to take off.
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