An EU kerosene tax to fight global poverty?

The EU is considering the introduction of a tax on aviation
fuel to find extra funding for poverty aid to the poorest
countries.

During the meeting of G7 finance ministers in London, EU Finance
Council President Jean-Claude Juncker admitted that the EU is
considering introducing an EU tax on kerosene, the fuel used by the
aviation industry. 

In the context of a discussion on debt relief for the world’s
poorest countries, the G7 finance ministers brainstormed on
the use of special taxes to find new development aid funding. As
the idea of a Tobin tax on international securities transactions
(proposed by France) was a taboo subject for some countries,
the attention turned to the possibility of taxing global
aviation.

The idea of a kerosene tax on aviation was originally proposed
by the Greens as a way of dealing with increasing air traffic and
its implications of the environment and climate change. Germany and
France gave its backing to the kerosene tax proposal recently. It
seems unlikely that the proposal would get a global majority. The
United States and the UK are very much opposed to the introduction
of such a new taxation.

Subscribe to our newsletters

Subscribe
Contribute