The EU may introduce new taxes on airline tickets and sugar
European Union member states are discussing the possibility of introducing new taxes on airline tickets and sugar to increase EU budget revenues for 2028–2034. These measures are being considered as one option for financing the bloc’s future expenditures.
Discussions are ongoing within the EU on how to increase revenue to finance the bloc’s new eight-year budget of 2 trillion euros.
Several ideas have been proposed regarding levies referred to as new “own resources,” including a tax on the profits of companies that have received government subsidies, the reintroduction of a financial transaction tax, and a levy on tourists arriving from outside the EU.
Although discussions about a pan-European tax on airline tickets are nothing new, a number of member states already tax air travel in one form or another at the national level, including Austria, France, Germany, Italy, the Netherlands, Portugal, and Sweden.
Across the EU, standard value-added tax (VAT) rates range from 17% to 27% and apply to most goods and services; however, airline tickets are exempt from VAT at the EU level. If this tax were to be introduced, it could be controversial and unpopular among European travelers and airlines.
The European Commission previously proposed a pan-European tax on ultra-processed foods high in fat, sugar, and salt as part of plans to combat cardiovascular disease. This measure had already been implemented to boost EU revenue until it expired in 2017.
The Commission, which has proposed duties on tobacco, electronic waste, carbon and greenhouse gas emissions, as well as a corporate income tax to finance the post-2027 period and provide funds for recovery from the COVID-19 pandemic, has called on national governments to propose alternatives to try to break the deadlock.
The proposed new revenue sources are expected to collectively contribute 66 billion euros annually to the EU budget for 2028–2034.
This was reported by Euractiv.
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