The Swedish government intends to abolish aviation taxes by July next year, and the move has been hailed by IATA.
Linda Lindberg, Sweden Democrats Member of Parliament, said at a press conference: “This will lead to lower prices for travellers and rising demand, boosting the competitiveness of airlines,” as reported by Reuters.
The tax is between SEK76 and SEK504pp (R130 to R870) depending on the length of the journey and, according to IATA, is a drag on the competitiveness of the Swedish economy while making no positive environmental impact.
“It is excellent news, which recognises that taxation of air passengers is counterproductive economically and ineffective environmentally. Better air connectivity boosts the productive capacity of the economy, leading to stronger tax revenues in the long term,” said Rafael Schvartzman, IATA Regional Vice President for Europe.
Affirming that aviation tax was not a solution for addressing aviation’s sustainability challenges, IATA said revenue earned from tax was not being used for investment in environmental solutions such as Sustainable Aviation Fuel (SAF).
It was also an inefficient method of reducing demand, according to IATA. The Swedish government was unequivocal in giving its reasons for abolishing the tax. Andreas Carlson, Minister of Infrastructure and Housing said the decision would enable investments in Swedish aviation and make Sweden more competitive.
