Germany’s new aviation taxes could impact Indian travellers, air industry
Germany has imposed aviation taxes from May 1, which will likely aect travellers. The tax ranges between €15.53 and €70.83 depending upon the route. This could aect tourists and students returning to India from Germany and those using Frankfurt as a transshipment hub to proceed to other destinations like the US. In the December quarter, 2.14 lakh passengers arrived from Germany to India, while 1.90 lakh travelled to Germany from India.
THE FALLOUT
Passengers flying domestically or to other EU countries will now be charged a fee of €15,53 per ticket, up from €12,73. For longer journeys exceeding 6,000 km — to the US or China — the fee will increase to €70,83 per ticket, the government said.
The new taxes would immensely impact public undertaking travel via German airports, said P Murugesan, Travel Agents Association Of India’s Managing Committee
Member. Most passengers are re-routing their travel plans via other European countries and/or Middle Eastern and Far Eastern countries. Murugesan, who is also the President of the Tamilnadu Travel Mart Society, said, the travel industry has urged the German authorities to re-consider the new tax regime.
The International Air Transport Association (IATA), which represents global airlines, has sharply criticised the increase in German aviation taxes, weakening the German economy and damaging aviation’s ability to decarbonise.
The tax will make Germany less competitive in key economic areas such as exports, tourism, and jobs. It will further aect Germany’s air transport recovery from the pandemic, which is one of the slowest in the EU. Germany’s international passenger numbers, for example, are still 20 per cent below pre-pandemic levels.
‘POLICY MADNESS’
“When Germany’s economic performance is anaemic at best, denting its competitiveness with more taxes on aviation is policy madness. The government should be prioritising measures to improve Germany’s competitive position and encouraging trade and travel. Instead, they have gone for a shortterm cash-grab which can only damage the economy’s long-term growth,” said Willie Walsh, IATA’s Director-General.
He added, “German government appears to have an unhealthy obsession with aviation taxes. On top of increasing the passenger tax, it is in favour of a European jet fuel tax which will make it even more expensive to do business in Germany or for families to go on holiday. Our survey of air travellers in Germany shows deep scepticism about government claims for ‘green taxes’...”