Germany plans to slash flight tax hike

Germany plans to slash flight tax hike

Germany Signals Possible Reversal of Air Travel Tax

Germany has hinted that it may roll back a steep levy on passenger flights as it pursues a pro‑business stance in Europe’s leading economy.

High Charges Hamper Competitiveness

Airlines have long decried Germany’s charges, which are aimed partly at cutting carbon emissions and are among the highest in Europe, as a hurdle to competitiveness.

Call for Tax Reversal

Christoph Ploss, the federal government’s tourism coordinator, told the Bild daily that the tax hike “must be reversed.” He added that “hard‑earned holidays to Mallorca must not become unaffordable,” referencing the popular Spanish island.

Recent Tax Hike

  • Short‑haul flights: 15.33 € (up from 12.73 €)
  • Long‑haul routes: 70.83 € (up from 58.06 €)

For comparison, France is planning to increase its tax on economy‑class flights within Europe to 7.30 € from 2.63 €.

Impact of the Tax Increase

The last year’s increase under former Chancellor Olaf Scholz has generated almost €2 billion in revenue but also sparked anger from airlines. Irish budget carrier Ryanair and German rival Eurowings warned late last year that they were considering cutting numerous routes to and from Germany, citing what they called excessive taxation.

Discussion on Tax Reversal

Reversing the tax rise as part of the 2026 budget is now being discussed between Germany’s ruling coalition parties, the conservative CDU and the centre‑left SPD, Bild reported.

Pro‑Business Objective

Chancellor Friedrich Merz of the CDU has tried to forge an economy‑friendly approach to revive a sluggish economy, introducing tax breaks for business investment and promising to reduce bureaucracy.