Dutch government proposes departure tax similar to Malta's

The Association of European Airlines (AEA), representing 31 main European airlines including Air Malta, yesterday condemned the Dutch government for proposing to introduce an air departure tax similar to the one currently in place in Malta.

A few weeks ago, the Dutch government proposed the introduction of a levy of €25 (Lm10.80) tax on all air passengers departing from the Netherlands.

According to the Dutch government, the tax would be a revenue generator, bringing in €350 million (Lm152 million) annually while also reducing the impact of aviation on climate change.

A spokesman for the AEA in Brussels yesterday told The Times that the tax would be similar to the one introduced in Malta, which the European Commission has already challenged as being in breach of EU law.

"We are very concerned over the Dutch proposal as it doesn't make any sense," the spokesman said.

"This will mean that the Dutch airlines will lose some of their competitiveness, as it is clear that their business is dependable on the Dutch market.

"Environmentally it also doesn't make any sense. If the entire Dutch aviation sector were to close down, the impact on global carbon dioxide emissions would be so small that you could hardly measure it."

Malta's departure tax has been in place since 1997. It started off as a Lm10 levy on every air ticket purchased in Malta, was doubled to Lm20 in 2005 and halved again from the beginning of this month following harsh criticism.

The Commission has made it clear that it expects the tax to be abolished altogether as long as the discriminatory aspects of it remain in place. Last December it stepped up its legal action against Malta by issuing a reasoned opinion, the second stage of an infringement process.

It holds that the tax is discriminatory as it is levied on air passengers beginning an international journey from Malta's airport but not if the passenger had started the journey outside Malta.

The tax, the Commission argues, places an unfair burden on residents in Malta and makes it more difficult for them to receive and provide services in other member states.