More private jet passengers will pay flight tax from 1 January 2025 | News item

News item | 07-07-2023 | 16:21

The cabinet is taking action so that more passengers flying in private jets will pay air passenger tax. This is done by lowering the weight limit, as a result of which passengers will pay flight tax on 82% of the flights with this type of aircraft. Now passengers on 60% of flights with private jets pay air passenger tax. The measure will take effect on 1 January 2025.

Adjusted air passenger tax for private jets

The air passenger tax was introduced by the government in 2021 to better price the pollution and nuisance caused by flying. At the request of the House of Representatives, the government has looked at three possible additions to the increased air passenger tax in January of this year, including the application of a lower weight limit. This appears to be possible, as a result of which more passengers of private jets will pay flight tax. This is expected to increase the number of private jet flights for which air passenger tax must be paid from 9,960 (60%) to 13,612 flights per year (82%).

This new limit has been chosen so that it is in line with the weight limit used in the European emissions trading system (EU ETS). In this way the measure remains enforceable. The adjustment has minimal consequences for the airports, because the adjustment of the border is easy to process in the airport systems. The measure for adjusting the weight limit will be included in the Tax Plan 2025.

No adjustment for transfer passengers and AirRail passengers

In addition, the possibility of taxing transfer passengers and exempting AirRail passengers from the air passenger tax was also examined. Taxing transfer passengers has the advantages of higher tax revenue and lower CO2emissions. The disadvantages are that it causes a decrease in intercontinental connections to Asia and North America from the Netherlands as travelers travel via other European airports. This could affect Schiphol’s hub function and have economic consequences. The government therefore considers it unwise to be the only member of the European Union to introduce an air passenger tax for transfer passengers at this time. The government therefore wants to discuss the air passenger tax and the level of the rates in a European context in the short term. It also appears that under the current circumstances it is not desirable to make an exception for AirRail passengers due to poor feasibility and enforceability.

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