"The German government has said it plans to reverse an increase in aviation taxes which came into force last year in a bid to support the industry. The tax cut comes as part of a broader effort to boost the German economy. Other significant measures include a subsidy for electricity costs for companies, and a plan to construct a number of new gas-fired power plants."
"The air traffic tax cuts can be expected to modestly affect the price of passenger tickets, and is seen by the country's aviation industry as a welcome measure to help keep the industry afloat. However the move is criticised by the environment protection association BUND, and others, for encouraging air travel over more sustainable alternatives. Air traffic ticket tax Chancellor Friedrich Merz announced the plan to reduce the airline ticket tax as of July 1st, 2026."
"This tax cut aims to reverse the significant increase made in May 2024, which had raised flight costs. At that time, the traffic light coalition government had hiked the air traffic ticket tax to 15.53 for short-haul flights, 39.34 for medium-haul flights (up to 6,000 kilometres) and 70.83 for the longest flights from German airports. The air traffic tax was originally introduced in 2011, under the then black-yellow government with Angela Merkel at the helm."
Germany will reverse a May 2024 increase in air passenger taxes, restoring lower rates from 1 July 2026. The measure forms part of a broader economic package that includes electricity subsidies for companies and plans to build new gas-fired power plants. The ticket tax cut is expected to modestly lower passenger fares and is intended to support the aviation sector. The change will reduce annual tax revenue by about €350 million, with losses charged to the transport budget and air traffic control costs reduced in 2026. Environmental groups such as BUND criticize the policy for encouraging air travel over sustainable alternatives.
Read at www.thelocal.de
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