Air travel tax cut sparks criticism from all sides

The Government wants to halve air travel tax, but the proposal receives criticism. Scrap it altogether, thinks the business community. Retain it, at least on long-haul flights, think a number of other consultative bodies.

» Updated: October 05 2024

» Published: June 22 2024

Air travel tax cut sparks criticism from all sides
Photo: Jonas Ekströmer/TT

The Government wants to halve air travel tax, but the proposal receives criticism.

Scrap it altogether, says the business community.

Keep it, at least on long-haul flights, say several other consultative bodies.

On Monday, the consultation period for the Government's proposal to halve air travel tax at the turn of the year expires. This means that the tax on a trip within Europe will be reduced to 39 kronor per person, while slightly longer trips to Egypt or the USA will incur a tax of 162 kronor. On genuine long-haul flights, the tax will be reduced to 529 kronor.

The air travel tax was introduced in 2018 and was motivated by climate reasons. Aviation must pay for a larger share of its emissions and break the rising emissions curve.

Now that it is to be halved, the purpose is primarily to increase competitiveness, not least for the aviation sector, which has not fully recovered from the pandemic.

The need for a national tax has also decreased, the Government believes, since aviation will soon be better covered by the EU's emissions trading system.

However, several consultative bodies protest against both arguments.

Should be increased

The Environmental Protection Agency notes that emissions will increase when the tax is reduced, which it considers a step in the wrong direction – in fact, the tax should be increased.

Regarding competitiveness, the agency tartly remarks that the tax affects all airlines taking off from Swedish soil – Swedish companies are not particularly affected.

And, just like the Energy Agency, the Transport Analysis Agency, and several other consultative bodies, the Environmental Protection Agency points out that the stricter EU regulations only apply to flights within Europe, and that long-haul flights will therefore be unfairly favoured when the tax is reduced.

The EU regulations do not address the problem of high-altitude emissions either.

In fact, the EU system covers less than half of Swedes' air travel emissions, notes a group of researchers from Chalmers, the School of Business, Economics and Law at the University of Gothenburg, KTH, and the Swedish University of Agricultural Sciences.

The argument that companies can choose to fly from other Nordic countries due to the tax does not hold either, note several. Many EU countries have air travel tax now, with Denmark being the latest example.

Scrap altogether

Others believe that the Government should scrap the tax altogether. This includes the Confederation of Swedish Enterprise and the aviation industry itself.

The Confederation of Swedish Enterprise calls it a dysfunctionally designed environmental tax that should never have been introduced. Even the National Institute of Economic Research (KI) believes the tax is bluntly designed, but sees a point in keeping it on longer flights.

The reason the Government does not want to abolish the tax altogether now is that it generates revenue. The halving will reduce tax revenues by around 900 million kronor per year.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Child Abuse Images Discovered on
1 MIN READ

Child Abuse Images Discovered on Computer at Swedish Repair Shop

Explosion Rocks Trollhättan Apartment Building,
1 MIN READ

Explosion Rocks Trollhättan Apartment Building, No Injuries Reported

Teenager Seriously Injured in Highway
1 MIN READ

Teenager Seriously Injured in Highway Collision with A-Tractor

Swedish Journalist Joakim Medin Moved
1 MIN READ

Swedish Journalist Joakim Medin Moved to High-Security Turkish Prison

SMHI Warns of High Grass
1 MIN READ

SMHI Warns of High Grass Fire Risk in Sweden's Snow-Free Regions

Swedish Journalist Joakim Medin Arrested
1 MIN READ

Swedish Journalist Joakim Medin Arrested in Turkey, Press Freedom at Risk

Man in His 30s Found
1 MIN READ

Man in His 30s Found Dead Outdoors in Norrköping; Murder Investigation Launched

Police Car and Fire Truck
1 MIN READ

Police Car and Fire Truck Crash on E4 Injures Officers

Sweden Prioritizes Journalist's Release After
2 MIN READ

Sweden Prioritizes Journalist's Release After Arrest in Turkey

Europol Looks to Sweden for
2 MIN READ

Europol Looks to Sweden for Tackling Digital Gang Crime

Woman Dies After Clothes Catch
1 MIN READ

Woman Dies After Clothes Catch Fire in Strömstad Residence

Spring Warmth to Sweep Sweden
1 MIN READ

Spring Warmth to Sweep Sweden with Temperatures Over 20 Degrees

Prehistoric Wasp Used Plant-Like Trap
3 MIN READ

Prehistoric Wasp Used Plant-Like Trap to Capture Prey, Study Reveals

Turkey Accuses Swedish Journalist of
3 MIN READ

Turkey Accuses Swedish Journalist of Terrorism and Anti-Turkish Reporting

Elderly Woman Airlifted After Clothes
1 MIN READ

Elderly Woman Airlifted After Clothes Catch Fire at Swedish Hospital

Swedes Struggle as Food Prices
4 MIN READ

Swedes Struggle as Food Prices Soar: 200 Kronor Gift Cards Run Out

Police Push for Expanded Surveillance
3 MIN READ

Police Push for Expanded Surveillance Powers on Minors in Sweden

Siblings in Sweden Marvel at
1 MIN READ

Siblings in Sweden Marvel at Rare Solar Eclipse with Welding Masks

Swedish Journalist Joakim Medin Expected
2 MIN READ

Swedish Journalist Joakim Medin Expected to Be Released Soon in Turkey

Police Struggle to Keep Up
3 MIN READ

Police Struggle to Keep Up as Online Radicalization Surges

Witness the Partial Solar Eclipse
3 MIN READ

Witness the Partial Solar Eclipse on March 29: How to Safely Watch

Body Discovered After Gislaved Apartment
1 MIN READ

Body Discovered After Gislaved Apartment Fire; Police Investigate

Swedish Journalist Joakim Medin Arrested
2 MIN READ

Swedish Journalist Joakim Medin Arrested in Turkey Without Charge Details

Teen Convicted in Skärholmen Tunnel
1 MIN READ

Teen Convicted in Skärholmen Tunnel Murder Appeals 14-Year Sentence

Key Figures Depart Following Millennium
1 MIN READ

Key Figures Depart Following Millennium System Halt in Västra Götaland

Teen Arrested After Man Shot
1 MIN READ

Teen Arrested After Man Shot in Gothenburg Residential Area

Two Arrested After Gunfire Hits
1 MIN READ

Two Arrested After Gunfire Hits Apartments in Arlöv Near Malmö

Genre image
1 MIN READ

Five Hospitalized Following Serious Car Crash Near Surahammar

Sweden Sets Clocks Forward for
1 MIN READ

Sweden Sets Clocks Forward for Summertime Transition

Man in His 70s Dies
1 MIN READ

Man in His 70s Dies in Drowning Accident in Jämtland

Facebook Revives Friend Feed to
1 MIN READ

Facebook Revives Friend Feed to Reconnect Users

Sweden Redirects 158 Million Kronor
1 MIN READ

Sweden Redirects 158 Million Kronor Aid to Myanmar Earthquake Relief

Fegen Residents Advised to Boil
1 MIN READ

Fegen Residents Advised to Boil Water Due to Waterworks Issue

Swedish Journalist's Arrest in Turkey
2 MIN READ

Swedish Journalist's Arrest in Turkey Sparks Global Outcry

EU License Changes May Impact
4 MIN READ

EU License Changes May Impact Swedish A-Tractor Rules for Teens

Swedish Journalist Joakim Medin Detained
3 MIN READ

Swedish Journalist Joakim Medin Detained in Turkey

Sixth Suspect Linked to December
1 MIN READ

Sixth Suspect Linked to December Murder in Växjö

Swedish Foreign Minister Deeply Moved
1 MIN READ

Swedish Foreign Minister Deeply Moved by Southeast Asia Earthquake

Man in Custody After Shooting
1 MIN READ

Man in Custody After Shooting at Police in Karlshamn

Swedish IS Terrorist Osama Krayem
1 MIN READ

Swedish IS Terrorist Osama Krayem Detained for Serious War Crimes