New EU Transport Commissioner to look into aircraft fuel tax

Airline Industry Information, Sept 30, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

The incoming European Union Transport Commissioner has said that he will reconsider the tax exemption on aircraft fuel after prices have settled down.

Jacques Barrot said that when fuel prices have settled he will look at the current tax exemption which applies to aircraft fuel and study whether there are risks of distortion to competition.

Airlines oppose a tax on fuel and claim that it would be an unfair burden on European airlines facing competition from outside the EU. Environmentalists have long asked for a tax to be placed on jet fuel to discourage pollution, reports Reuters.

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