It is often said that airlines are not taxed enough, especially since there is no tax on jetfuel. In fact, air transport pays a large number of taxes and levies.
Airlines have to pay taxes to cover notably security costs (airport tax) and for the costs of administering Civil Aviation (DGAC). They also directly finance infrastructure costs such as air terminals, runways and air-traffic control facilities. Other taxes and levies help fund local, national and even international development.
According to a recent study from the International Air Transport Association (IATA) on taxation levels for different transport modes, the government in France collects a net revenue of €67 for every 1,000 passenger-km in air transport, and disburses €78 for the same 1,000 passenger-km by rail. In Germany, for the same traffic level, the government earns €11 in the case of air transport, but pays out €51 in the case of a rail journey.
Air France contributes to soundproofing programmes through special taxes on noise. Aviation is the only transport mode that contributes financially to the soundproofing of local residents’ housing and public facilities. In fact the Tax on Air Transport Noise Pollution (TNSA) finances 80% of these soundproofing programmes.
For Air France, this participation offers a significant way of improving the environment in which it operates.
There is considerable debate about taxing jetfuel.
For the record, aviation fuel is exempt from national tax by virtue of Article 21 of the Chicago Convention on International Civil Aviation, which aims to assure fair competition between international carriers.
Unlike other transport modes, aviation already directly finances the cost of its infrastructure via taxes and levies.
For road transport, infrastructure costs are borne by local authorities via the TIPP tax on petroleum products included in the price of fuel.
Yet some think that a tax on aviation fuel would be justified on the grounds of the “polluter pays” principle. This comes down to paying for environmental impacts, and is already implemented in the aviation sector for noise pollution (tax on air transport noise pollution). Measures have also been taken to limit the impact of emissions (when aircraft fleets are renewed). Unlike air transport, other transport modes are not affected by this principle.
The International Civil Aviation Organization (ICAO) has rejected the concept of this kind of tax. According to its study, taxing aviation fuel would not make any substantial environmental gains and would have a very negative economic and social impact.
Moreover, this sort of measure would reduce the investment capacity of airlines to renew their fleets. Fleet regeneration is the most effective way of reducing noise pollution and slowing emissions.
The ICAO believes that an open international marketplace for emissions trading is probably the best solution for fighting global warming. This system is more cost-effective because it can theoretically limit the global pollution level of emissions and also focus efforts to reduce pollution where they are more effective and feasible. This system must obviously be applied globally to create a genuine emissions trading marketplace.
