Travellers to Help Bail Out Bankers with New Departure
Geneva - The International Air Transport
Association (IATA) criticised budget plans in Belgium and Ireland that
mimic British and Dutch departure taxes as “collective madness.”
madness is the only way to describe the EUR 150 million Irish and EUR 132
million Belgian departure tax proposals. Filling budget gaps or financing
government investment in the banking industry with gratuitous travel taxes
is policy myopia at its worst,” said Giovanni Bisignani, IATA’s Director
General and CEO.
the Belgian and Irish governments announced plans to implement departure
taxes in their new budgets. Combined with the proposed UK Aviation Duty
and the recently implemented Dutch departure tax, by 2010 air travellers
could face a tax burden of up to EUR 3.8 billion annually in these four
could not be worse for governments to make mobility more expensive. Look
at what has happened in fuel, the biggest cost item for airlines. Even
with the recent drop, today’s price is still over 300% more expensive than
it was only a few years ago,” said Bisignani.
collective action to squeeze taxpayers, Europe’s governments should be
looking to improve European competitiveness. An effective Single European
Sky would save 16 million tonnes of CO2 annually and improve the
competitiveness of Europe’s skies by over EUR 5 billion,” said
The Irish government announced plans to raise EUR 150
million annually with a tax to be applied to all passengers departing
Irish airports commencing 30 March 2009.
Finance Ministry confirmed plans to raise EUR 132 million annually with
a similar tax, the details of which are yet to be decided.
July 2008, the Dutch Government began levying between EUR 11.25 and
EUR45.00 on passengers departing Dutch airports to raise an estimated
EUR 312 million annually.
Government doubled its Air Passenger Duty in 2007 to collect GBP 2
billion (EUR 2.5 billion) annually. From November 2009, the UK
Government is proposing to replace this with an Aviation Duty that will
collect GBP 2.5 billion (EUR 3.2 billion) annually rising to GBP 3.5
billion (EUR 4.4 billion) by 2011/2012.