Germany cuts air traffic tax to shore up sector

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Germany decided late last night to reduce air traffic tax from July, down to May 2024 levels, in an attempt to boost the aviation sector.

International airlines have long complained that flying to and from German airports was too expensive and threatened to reduce their presence there

German Chancellor Friedrich Merz’s cabinet in April approved plans to reduce air traffic tax from July, down to May 2024 levels, in an attempt to boost the aviation sector.

The move fulfils a pledge in the coalition deal between Merz’s conservatives and Social Democrats to reverse a 2024 tax increase made by the previous government

The duty is imposed on airlines at German airports, on top of airport charges and fees.

The tax will be reduced by €2.50 per ticket for short-haul flights, €6.33 for medium-haul and €11.40 for long-haul.

The reduction will take effect from July 1.

It is estimated that the cost to the federal government will be around €170m for the second half of this year and €355m in subsequent years.

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