Business class travel and private jets will be taxed more heavily according to some countries’ wishes. This caused controversy in Germany: SPD ministers signaled their approval, while Union departments rejected the plan.
The coalition is threatened with a row over a new tax on luxury air travel. If the SPD is successful, business and first class passengers as well as private jet customers could be asked to pay a climate fee in the future. “Anyone who travels first class or by private plane will be able to pay taxes without any problems,” Federal Environment Ministry spokesman Carsten Schneider (SPD) told “Spiegel”. Federal Minister of Finance Lars Klingbeil (SPD) agreed with this statement.
The Social Democratic Ministry responded to the initiative of nine countries to present a luxury aviation tax at the world climate conference in Belém, Brazil, including Spain and France. In this way, funds must be generated reliably for climate protection and development, explains the so-called “Premium Airmen Solidarity Coalition” in a communiqué available to “Spiegel”.
The union-led ministry rejected the initiative. The Federal Ministry of Transport headed by Patrick Schnieder (CDU) told “Spiegel”: “The problem does not currently arise.” Federal Economy Minister Katherina Reiche’s office would not comment and asked that the matter be handled by “the Federal Ministry of Finance and the Federal Ministry of Transport, which have primary responsibilities within the federal government.” The leaders of the new coalition agreed late Thursday that the air travel ticket tax should be abolished by 2026.
According to a statement from the “Premium Flyers Solidarity Coalition”, “business and first class travelers as well as private jets” must pay a special tax – either directly on air tickets or, in the case of private flights, on kerosene fuel. Each country should design a luxury tax independently, the statement said, also because some countries already have kerosene taxes.
New taxes must then be added and compared with the status quo. “Society recognizes the growing injustice and recognizes that taxing billionaires and private airlines is fair and necessary,” said Jennifer Morgan, who is responsible for international climate policy at the Federal Ministry of Foreign Affairs under the traffic light coalition.
Maldives as a high tax model
Proponents of a luxury aviation tax argue that the ultra-rich don’t pay much attention to prices and will continue to fly even if ticket prices rise. “A sensibly designed aviation tax could generate revenues that can be counted on for climate and development finance and at the same time strengthen justice and solidarity,” the advocacy groups argued in a joint letter.
The initiators used the Maldives as an example. The tourism-dependent country charges a high departure tax: the equivalent of 100 euros must be paid for business class, around 207 euros for first class, and 415 euros for private jets. “There is no reason why other countries cannot do the same,” supporters say.
ceb with AFP
