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the eternal subject of taxation of the air sector

Ln October 10, the release by the government of its finance bill for 2025 caused a stir in the aviation sector. Among the revenues envisaged, for 1.5 billion euros, are measures to be introduced by way of amendment on plane tickets and on fossil fuels (coal, gas, oil). The debate quickly gained momentum over the increase in gas taxation, a hypothesis ultimately ruled out by Michel Barnier. That leaves aviation, which could add 1 billion euros to the state coffers in a full year.

By what device? “It has not yet been decided, but there will indeed be a tax on plane tickets, which is a very carbon-intensive means of transport. It will be put through the mill of Parliament,” evaded Olga Givernet, the Minister Delegate in charge of Energy, this Monday, October 14, at the microphone of Info. This was all it took to raise the ire of the aviation professions. Chaired by Rochelais Thomas Juin, the Union of French Airports (UAF) has said everything bad it thinks of this revenue stream. “We are dealing with a State which cruelly lacks vision on the challenges of the aviation sector,” he reacted during a press conference held with Pascal de Izaguirre, the president of the National Aviation Federation and of its professions (Fnam).

“Undertaxation” for the Court of Auditors

By publishing a report on energy taxation just a month ago, the Court of Auditors has the good taste to shed light on the controversy. She describes the air tax regime as “favorable”. Unlike other fuels and alternative energy sources – electricity for trains – kerosene for commercial aircraft is exempt from excise duty. “In addition, VAT applies at the reduced rate of 10% for domestic flights. For international flights in particular, France has concluded air service agreements which generally provide for exemption,” specify the magistrates.

In 2017, exceptional air travel measures represented a shortfall (tax expenditure) of 3.1 billion euros for public finances. The information then disappeared from the budget documents. The Court of Auditors has reconstructed the calculation. It concludes that, for the year 2021, the non-taxation of kerosene was equivalent to 2.58 billion euros. She certainly considers that the tax on plane tickets, introduced in 2005, and the European carbon market weigh on the sector. Without compensating for its “undertaxation”. Air travel is taxed “to the tune of 0.6 billion euros in 2021. However, if no exemption existed, and with the strong hypothesis of an absence of change in the behavior of economic agents, this taxation would be 5.75 billion euros,” she judges.

As Pascal de Izaguirre suggests, the aviation sector has 100,000 direct jobs and 400,000 indirect jobs in France. And, subtext, a strong capacity for persuasion. We will assess its thickness during the budgetary debate before the two assemblies.

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