Tax on Aircraft Fuel Delayed

Publication date: 15 October 2004

In spite of efforts from the EU the Assembly of the International Civil Aviation Organisation (ICAO) has ruled out the introduction of taxes on aircraft kerosene until its next assembly in autumn of 2007.

However, as long as EU member states agree there is room to tax kerosene on intra-EU flights. During his hearing in the Parliament on 19 September 2004  the new EU Commissioner for Transport Jacques Barrot discussed the possibility of aircraft fuel taxes not only under the environmental aspect, but also under the aspect of competing transport modes. The UK has already announced to push forward the issue during its EU presidency in July 2005.