Sweden to introduce airline tax to curb emissions
17 March 2017 | Adaptation
The Swedish government plans to propose a new tax on airline tickets, in an effort to curb greenhouse gas emissions.
The tax would raise the prices of tickets by between 80 and 430 SEK (9 and 48 U.S. dollars), depending on the length of the flight.
Deputy Finance Minister Per Bolund of the Green Party said at a press conference on Wednesday that the aim is to encourage people to fly less and to choose greener transport options.
"Sweden should become one of the world's first fossil-free welfare states and, today, flights stand for large-scale emissions," Bolund told reporters. "The government has therefore been clear regarding its ambition to impose a tax on flights in order to lessen the impact on the climate."
Under current Swedish rules, airlines pay value-added tax of six percent on domestic flights while international flights are exempt from VAT. The new airline tax is meant to compensate for the lack of VAT and for the low price airlines to pay for greenhouse-gas emissions.
The proposal would be included in the 2018 budget bill, and, if passed, the tax would take effect on Jan. 1 next year. (1 U.S. dollar = 8.9 SEK)