Air Malta has revealed that taxing aviation fuel for inter EU flights will cost a lot, harm the economy, negatively impact Malta’s national airline and destroy a lot of jobs.
The national airline revealed that aviation fuel will become 90% more expensive by 2033 if a proposal made by the EU is passed. Air Malta had this to say “A tax on aviation fuel will not result in a modal shift to another mode of transport but will merely have a negative impact on the Maltese islands’ economic and social cohesion while isolating the country,”
It continued to state that Malta, as a peripheral country who is dependent on tourism, will be harmed massively from this proposal. The directive proposed by the EU will also reportedly introduce a progressive tax on aviation fuel supplied in the EU for intra-EU flights. The tax rate will start at 0% in 2023 but will rise by 10% each year, meaning by 2033 the tax rate will gradually become 100%.
Since the proposal affects taxation on a European level, the proposal requires unanimous approval of all EU member states. The national carrier stated that the extra costs will have a negative ripple effect on these countries’ economies .
“Air Malta is of the view that taxation is not the answer to aviation sustainability and the reliance on taxation as the solution for cutting aviation emissions in the EU’s ‘Fit for 55’ is counterproductive to the goal of sustainable aviation – a tax will merely siphon much needed funds from the industry that could support emissions reducing investments in fleet renewal, clean technologies and the transition to SAFs,” Air Malta said.
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