ID :
24955
Thu, 10/16/2008 - 19:22
Auther :
Shortlink :
http://m.oananews.org//node/24955
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IATA TICKS OFF BELGIAN & IRISH PLAN FOR NEW DEPARTURE TAXES
KUALA LUMPUR, Oct 16 (Bernama) -- The International Air Transport Association (IATA) has criticised budget plans in Belgium and Ireland that mimic British and Dutch departure taxes as "collective madness."
"Collective madness is the only way to describe the 150 million euro Irish
and 132 million euros Belgian departure tax proposals," IATA said in a statement
issued from Geneva Thursday. (EUR1=RM4.7)
Filling budget gaps or financing government investment in the banking
industry with gratuitous travel taxes is policy myopia at its worst," said
Giovanni Bisignani, IATA's Director General and chief executive officer.
On Tuesday, the Belgian and Irish governments announced plans to implement
departure taxes in their new budgets.
Combined with the proposed UK Aviation Duty and the recently implemented
Dutch departure tax, by 2010 air travellers could face a tax burden of up to 3.8
billion euros annually in these four countries alone.
"The timing could not be worse for governments to make mobility more
expensive. Look at what has happened in fuel, the biggest cost item for
airlines."
"Even with the recent drop, today's price is still over 300 percent more
expensive than it was only a few years ago," said Bisignani.
He said that rather than collective action to squeeze taxpayers, Europe's
governments should be looking to improve European competitiveness.
"An effective Single European Sky would save 16 million tonnes of CO2
annually and improve the competitiveness of Europe's skies by over 5 billion
euros," he said.
Providing details, IATA said that the Irish government announced plans to
raise 150 million euros annually with a tax to be applied to all passengers
departing Irish airports commencing March 30 next year.
The Belgian Finance Ministry confirmed plans to raise 132 million euros
annually with a similar tax, the details of which are yet to be decided.
Effective July 1, 2008, the Dutch Government began levying between 11.25
and
45.00 euro on passengers departing Dutch airports to raise an estimated 312
million euros annually.
The UK Government doubled its Air Passenger Duty in 2007 to collect two
billion British pounds (2.5 billion euro) annually.
From November 2009, the UK Government is proposing to replace this with an
Aviation Duty that will collect 2.5 billion pounds (3.2 billion euros) annually
rising to 3.5 billion British pounds (4.4 billion euros) by 2011/2012.
"Collective madness is the only way to describe the 150 million euro Irish
and 132 million euros Belgian departure tax proposals," IATA said in a statement
issued from Geneva Thursday. (EUR1=RM4.7)
Filling budget gaps or financing government investment in the banking
industry with gratuitous travel taxes is policy myopia at its worst," said
Giovanni Bisignani, IATA's Director General and chief executive officer.
On Tuesday, the Belgian and Irish governments announced plans to implement
departure taxes in their new budgets.
Combined with the proposed UK Aviation Duty and the recently implemented
Dutch departure tax, by 2010 air travellers could face a tax burden of up to 3.8
billion euros annually in these four countries alone.
"The timing could not be worse for governments to make mobility more
expensive. Look at what has happened in fuel, the biggest cost item for
airlines."
"Even with the recent drop, today's price is still over 300 percent more
expensive than it was only a few years ago," said Bisignani.
He said that rather than collective action to squeeze taxpayers, Europe's
governments should be looking to improve European competitiveness.
"An effective Single European Sky would save 16 million tonnes of CO2
annually and improve the competitiveness of Europe's skies by over 5 billion
euros," he said.
Providing details, IATA said that the Irish government announced plans to
raise 150 million euros annually with a tax to be applied to all passengers
departing Irish airports commencing March 30 next year.
The Belgian Finance Ministry confirmed plans to raise 132 million euros
annually with a similar tax, the details of which are yet to be decided.
Effective July 1, 2008, the Dutch Government began levying between 11.25
and
45.00 euro on passengers departing Dutch airports to raise an estimated 312
million euros annually.
The UK Government doubled its Air Passenger Duty in 2007 to collect two
billion British pounds (2.5 billion euro) annually.
From November 2009, the UK Government is proposing to replace this with an
Aviation Duty that will collect 2.5 billion pounds (3.2 billion euros) annually
rising to 3.5 billion British pounds (4.4 billion euros) by 2011/2012.
