European airlines have begun an offensive against the kerosene tax prepared by the European Union with the aim of taxing polluting emissions from airplanes.
In a meeting held yesterday in Barcelona, Airlines For Europe (A4E), Association of Airlines (ALA) and European Regions Airline Association (ERA) demanded to stop the creation of this new tax on member states, which retain powers in tax matters. . “We are the scapegoat of the entire transportation industry,” lamented the representatives of these three employers' associations, Ourania Georgoutsakou (A4E), Javier Gándara (ALA) and Montserrat Barriga (ERA).
According to these associations, which represent the vast majority of EU airlines, the tax on kerosene would mean “double taxation” since, from their point of view, European regulations already tax greenhouse emissions, such as CO2, a through the emissions trading scheme (ETS) that was approved more than ten years ago.
At the meeting, the representatives assured that if the tax finally goes ahead, “fuel costs will double, which now account for 30% of expenses” and that “this increase will be reflected in the final price of the tickets.” of airplaine". According to a study commissioned by the consulting firm Steer, the increase will be 6% in flights between Catalonia and any EU country, and 6.5% in Spain as a whole. The study goes further and ensures that the price increase will reduce the arrival of foreign tourists to Spain by almost 9%, a fact that will have a direct and indirect impact on tourist spending and employment. “The kerosene tax would mean a reduction in the Catalan GDP of 724 million euros and 7.7 billion in the Spanish GDP,” says the Steer report, which also indicates that it will cause the loss of 50,000 jobs in Spain.
As required by European regulations, the approval of a tax of this magnitude requires the unanimity of all EU countries. Despite this strict requirement, airlines fear that the tax will go ahead since the regulations provide exemptions for island countries and outermost regions. In Spain, the Canary Islands and probably the Balearic Islands would be exempt. They are two very touristy territories whose industry could benefit to the detriment of the Catalan industry, which could also suffer competition from EU flights to non-EU destinations, exempt from the tax, such as Morocco, Tunisia or Turkey.
