Hungary criticized for “outlandish” suggestion to postpone aviation fuel tax until 2049

A leaked document reveals that Hungary is proposing to delay the implementation of a minimum levy on aviation and maritime fuel until 2049, a move that has sparked outrage among environmentalists and climate advocates. The European Commission had previously proposed a reform to the 2003 Energy Taxation Directive to cut CO2 emissions, including ending the tax exemptions for airlines and maritime transport. However, progress on the bill has been delayed due to the need for unanimous agreement from all EU member states.
The proposal to postpone the minimum tax rates for aviation and maritime fuels is in direct conflict with the EU’s climate policy targets, according to Jo Dardenne of Transport & Environment. On the other hand, the European aviation sector, represented by A4E, claims that airlines already pay significant sums of tax and that implementing a fuel tax would be counterproductive.
Several EU governments, including the Netherlands, Belgium, France, Sweden, and Luxembourg, have previously supported the idea of taxing airline fuel. However, discussions on the matter have been ongoing for years, with government delegates set to discuss the Hungarian compromise proposal in September. The European Parliament has also faced challenges with lead negotiator Johan van Overtveldt postponing a vote on the proposal, leaving it for the new parliament to address.
The issue of taxing aviation and maritime fuel continues to be a contentious topic within the EU, with conflicting viewpoints on the economic impact and environmental benefits of implementing such measures. The outcome of the upcoming discussions in September will likely have significant implications for the future of European energy taxation rules.

Source
Photo credit www.euronews.com