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 Germany confirms new environmental-scam-tax on passengers

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Germany confirms new environmental-scam-tax on passengers Vide
PostSubject: Germany confirms new environmental-scam-tax on passengers   Germany confirms new environmental-scam-tax on passengers Icon_minitimeSat Sep 04, 2010 5:06 am

The German government approved a highly criticized air passenger duty tax, which took effect Wednesday for bookings beginning Jan. 1, 2011.

The "ecological air travel levy" was included in a package of government spending cuts introduced earlier this year by Chancellor Angela Merkel, who has maintained that Berlin needs to slash spending by €80 billion ($101.5 billion) by 2014 to alleviate the nation's shaky fiscal situation (ATW Daily News, June 9).The new tax is expected to raise €1 billion ($1.27 billion) annually.

German Finance Minister Wolfgang Schaeuble said he does not expect that airlines will suffer from the tax. Instead, he said, carriers will pass it on to their passengers. Passengers boarding flights in Germany will be charged €8 for domestic and intra-European short-haul flights, €25 for medium-haul flights and €45 for long-haul flights.

The German Airport Assn. criticized the new tax, which it believes could mean the loss of thousands of jobs in the country's aviation industry. Lufthansa said the fee will weaken Germany's airlines by encouraging passengers to bypass the country. The Netherlands (ATW Daily News, Feb. 8, 2008) and Denmark (ATW Daily News, Nov. 9, 2005) both tried similar taxes before dropping them after seeing travelers bypass their airports in favor of lower cost alternatives in near-by countries.

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