Netherlands Ponders New Aviation Tax

Posted on 2019-03-12

The Dutch Government has begun a public consultation exercise on plans to introduce a new tax on air travel by 2021.

The two-month consultation, launched on July 5, explores several options for an air transport tax, including national taxes based on either aircraft or departing passengers. The consultation also examines the possibility of an EU-level aviation tax.

Under the Government's proposals, a national per-passenger tax would be imposed at a rate of EUR3.80 (USD4.46) for flights within the EU, and EUR22 for intercontinental flights. This would raise an estimated EUR200m in revenue, the Government said.

The consultation follows up on a commitment in the governing coalition agreement for a new environmental tax on the aviation sector. According to the Government, revenue from the tax would be used to reduce other taxes on individuals and businesses, and to fund environmental protection initiatives.

The Government intends to draw up a draft bill on its preferred option and begin legislative proceedings for the introduction of a new aviation tax later this year.

Source: Tax-News.com