Dutch and Belgian governments have recently suggested the ecological taxation of air transport as a measure to fight against global warming at an EU level. At this point, other means of transport, such as rail transport, are taxed more even though they pollute less. The main aim of this eco-tax is to encourage costumers to rethink their travel habits. The tax could be applied in the form of a VAT on airline tickets or a tax on kerosene, both of which are currently exempt from tax. In terms of money, the eco-tax on kerosene could bring a total of nearly 9.5 billion euros per year to all European states while a tax on airline tickets could generate up to 17 billion euros. However, it is still not clear how the money raised would be used by the governments.
As can be expected, the opposition to “ecological taxation” is big within the EU, primarily because of the concerns related to potential changes in the tourism market. If implemented only in Europe, this eco-tax could lead to a potential shift of tourism toward other (non-EU) countries that are not required to enforce the measure. The Swiss National Council already rejected the draft of the tax on airline tickets and it’s safe to assume that many more countries will follow, especially those who highly rely on tourism. In order to have a real impact, the new eco-tax should be applied worldwide.