January 19, 2006
A report on aviation taxes and charges has been published by the industry lobby group, IATA. Its aim seems to be to head off threats to impose taxes on aviation. The report is highly misleading. The report by IATA (International Air Transport Association) is called, IATA Economics Briefing No 2 – Aviation Taxes And Charges’, was published in Nov 05.The document is, as one would expect, a lobbying document. Its aim seems to be to head off threats to impose taxes on aviation.“The aviation industry creates substantial economic value. Governments already reap the benefits airlines provide to economies. We are a heavily taxed industry. We must ensure that unjustified new tax proposals do not add to this burden.”The upshot of the study is “This report shows that the aviation sector currently pays a significant amount in terms of both taxes and user charges. Indeed, airlines already pay in full – and more – for their associated infrastructure costs. By contrast, rail and urban transit networks are heavily subsidised. Road users do pay a higher total amount of tax, but typically make a lower net contribution than the aviation sector on a per journey basis.”There are some fundamental flaws in the report:
For a fuller critique (two page) see link below.Critique of IATA report (Word doc, 2 pages).