- EU negotiates island exemptions in proposed aviation fuel tax.
- The draft document shows potential benefits for Ireland, Cyprus, Malta, Spain, and Greece.
A leaked draft document states that negotiations within the European Union (EU) discuss island exemptions in a planned EU-wide aviation fuel tax. They could benefit countries like Ireland, Cyprus, Malta, Spain, and Greece.
The European Commission proposed energy tax reforms in 2021 to align with climate goals. Including introducing taxes on intra-EU flight fuels. A compromise draft from Belgium, the current holder of the EU presidency, suggests softer regulations for islands reliant on aviation and shipping for connectivity and commerce.
Islands would avoid the jet fuel tax until 2032. At the same time, other EU states would follow a minimum tax rate from 2028, with options for national levies post-adoption.
The aim is to gain support from island nations. They are considering concerns about economic impacts, with exemptions from EU-mandated shipping tax rates.
Altering EU tax policy requires unanimous approval, posing challenges despite potential economic relief for islands. Concerns persist about impeding emission reduction efforts.
Regardless of the addressing economic pressures. Flights to and from islands account for about 22% of intra-EU flight fuel consumption.
This is noted by Transport and Environment. EU diplomats will discuss the compromise, considering potential voter concerns before the June European Parliament elections.