TAX NEWS - JUNE 2010

Germany Tax: Germany Plans Air Travel Tax to Help Plug Budget Gap

Germany plans to impose a tax on air travel as part of a four-year plan to reduce the budget deficit, Chancellor Angela Merkel told reporters in Berlin today.

Air travel tax will yield 1 billion euros ($1.2 billion) a year in revenue for German federal government, the government said in an e-mailed statement. Air travel tax will be paid by passengers departing from German airports, with the level depending on factors such as the flight's noise level and fuel consumption, according to the statement.

Germany's national air travel tax will be replaced by a Europe-wide measure once aviation is subject to European Union carbon emissions trading, the statement said.