Manufacturing Industry

Ticket tax exemptions for US airlines unlikely - claim

Airline Industry Information, Sept 8, 2005

It is unlikely that there will be a rollback of ticket taxes paid by airline passengers, according to the US Transportation Secretary Norman Mineta.

Mineta reportedly said that he has discussed exemptions to the 7.5% excise tax on airline tickets with the airline industry. Such exemptions would allow airlines to add more fuel surcharges, Reuters reported. Airlines are not pleased with the federal taxes and fees that can be up to a quarter of the total price for tickets.

However a unilateral decision to change the taxes, made by transportation regulators, is unlikely to be possible with the current US tax legislation, according to a senior aide to Norman Mineta. It is thus not considered a good alternative. A change would reportedly also require approval from Congress and the administration has not talked about making it a proposal.

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