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Tax on aviation to fund EU?

Austria, which currently holds the presidency of the EU, has proposed funding the EU by means of a tax on aviation.


Austria, which currently holds the presidency of the EU, has proposed funding the EU by means of a tax on aviation.The EU is entirely reliant on contributions from member states and there is a desire by some for the EU to have its own independent sources. On 18 Jan 06, the Austrians suggested that suitable sources of funding might be a tax on short-term financial transactions or on air travel.The AEF does not have a view on EU funding, but it is worth pointing out that EU spending is very small compared with spending by national governments on their own services.

The reason why aviation was singled out is presumably that it is very under-taxed compared with other sectors of the economy. For example, it pays no tax on fuel. See link below for more on this issue.

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