Briefing

Aviation VAT review – solving twin challenges

March 18, 2015

Aviation's tax-exempt status has always been an unjustified subsidy to the most carbon-intensive mode of transport. As the EU's commits to further emissions reductions and to a shift towards environmental taxation, so arguments for abolishing these exemptions are stronger than ever. This briefing outlining what steps the EU needs to take, and how ending these exemptions can reduce emissions and create employment.

Two key objectives identified by the new Commission are to reduce Europe’s high level of unemployment and to continue Europe’s leadership in reducing climate emissions. Ending the generous tax subsidies received by aviation is a way to do both.

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