In a bid to finance the aviation industry’s shift towards environmentally sustainable fuel, the Danish government has decided to implement a new tax on air travel.
Last month, the government proposed a new tax on air travel amounting to 100 Danish kroner (approximately $14) per air journey. The proceeds from this tax will contribute to funding the “ecological transition” of the aviation sector. Denmark aims to have all domestic flights using 100% environmentally friendly fuel by 2030.
The implementation of the new tax will occur gradually, commencing in 2025. By 2030, the tax will amount to 50 kroner ($7) per person on European flights, 310 kroner ($45) on medium-haul flights, and those traveling long distances will be required to pay 410 kroner ($60).
Denmark’s Minister for Climate, Lars Aagaard, stated that the country’s aviation sector, like all other industries, must reduce its impact on the climate and move towards a green future. According to the Danish National Institute of Oceanic and Atmospheric Research, aviation is responsible for nearly 3.5% of all factors influencing climate change.
Simultaneously, ministers acknowledged that the passenger tax will have a greater impact on small regional airports than on the country’s major airports. This is because the tax will need to be paid in both directions on domestic flights. Consequently, regional airports will be eligible for assistance from the government.
