EU Fuel tax in Shipping and Aviation

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EU Considers 10-Year Exemption on Aviation and Shipping Fuel Taxes -...

The Danish draft compromise envisages that aviation and shipping fuels would remain exempt for 10 years, with only two exceptions. Taxes could be levied on small aircraft carrying a maximum of 19 passengers, as well as on boats classified as “private pleasure craft.”

The text states: “In 2035, the Commission should examine the possibility of taxation of air navigation and waterborne navigation and propose amendments to this Directive, where appropriate.”

The justification given is to “maintain the competitive position of Union companies” in the global marketplace, where fuel taxation practices vary widely.