EBAA and GAMA Oppose New European Aviation Fuel Tax

EBAA and GAMA are jointly opposing new European Commission plans to start taxing jet-A used by aircraft with fewer than 19 seats for both commercial and non-commercial flights. The new levy is part of a proposal for the wider Energy Taxation Directive (ETD), which was drawn up last month by the European Union.

EBAA said the tax would amount to €0.40 ($0.46) per liter of fuel, which equates to around $1.74 per U.S. gallon. The group claimed this would effectively double the price of fuel for many operators.

“To make matters even more paradoxical, sustainable aviation fuel used by business aviation would be taxed at a rate of €0.18 per liter, running counter to the EU objective of making SAF more affordable,” said the EBAA statement. “Meanwhile the rest of the aviation sector [i.e. operators of larger aircraft] would benefit from a 10-year exemption, with a review scheduled only afterwards. This market a clear and unjustified discrimination against business aviation.”

The business aviation industry groups have warned leaders of EU member states that the fuel tax will have negative consequences for the sector, and, by extension on Europe’s economy and transportation network. The ETD proposal is expected to be voted on during a meeting of the European Union’s Economic and Financial Affairs Council on November 13.

According to EBAA, the jet-A tax is part of a compromise proposed by the Danish government, which holds the presidency of the EU Council through December. The 27 EU member states take turns to hold the presidency for periods of six months, giving them significant opportunities to introduce their favored policy initiatives.

Officials from EBAA and GAMA—both of which have offices in Brussels—are raising their concerns with individual EU member states in the hope of blocking the tax in the November vote. They have launched an outreach campaign with letters sent to the appropriate government departments in each country and organizing meetings with the permanent EU representatives of member states.