In a leaked document, it was revealed that Budapest is pushing to delay the implementation of a minimum tax on aviation and maritime fuels until 2049, sparking outrage among environmentalists. The proposal, seen as contradicting EU climate policy targets, comes as a part of a stalled reform of European energy taxation rules aimed at achieving a 55% cut in CO2 emissions by 2030.
The delay in implementing a tax on the aviation industry, which currently enjoys exemptions from such levies, has been criticized by NGOs like Transport & Environment, who argue that it undermines the purpose of putting a price on dirty fuels. However, the aviation sector, represented by the lobby group A4E, claims that airlines already pay significant taxes and that introducing an aviation fuel tax would harm their competitiveness and potentially drive passengers to non-EU airports.
Several EU governments have previously supported the idea of taxing airline fuel, with some countries hosting conferences on the issue. Additionally, at the COP28 climate summit, a joint statement was signed by several countries calling for special attention to be paid to phasing out fossil fuel subsidies in aviation and maritime transport.
However, the discussions in the EU over the proposal are likely to continue, with the Hungarian compromise set to be discussed behind closed doors. The European Parliament also faces division on the issue, with the lead negotiator controversially delaying a vote on the proposal, leaving it for the new parliament to address. The debate over taxing aviation and maritime fuels is ongoing, highlighting the challenges of reaching a consensus on environmental policies in the EU.
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