Federal government wants to increase ticket tax on passenger flights

Titled: "Germany's Flight Tax Overhaul: Adjustments to Air Traffic Tax to Boost Budget Revenue"

Say goodbye to the tranquility of budget-constrained German officials as they mull over increasing the ticket tax on passenger flights. The federal government's spokesperson announced on Tuesday that they're prepared to adjust the air traffic tax, aiming to generate additional revenue in the wake of the budget crisis [1][2].

It seemed as though a national kerosene tax lurked on the horizon, given that a Ministry of Economic Affairs paper had proposed taxing kerosene in domestic air traffic. However, the German government's spokesperson has rendered those rumors obsolete, assuring that the air traffic tax will remain the primary revenue source [1][2].

Such adjustments will undoubtedly impact the aviation industry, with the Federal Association of the German Air Transport Industry issuing sharp criticism against the introduction of a domestic kerosene tax. They argued that this policy would increase feeder traffic costs, ultimately compelling consumers to seek cheaper alternatives in other countries [1][2].

With the German government's decision, travellers should brace themselves for consequences that come with this shift in policy. The spokesperson maintains that the annual adjustments to the air traffic tax will generate substantial revenue, up to 580 million euros annually beginning 2024 [1][2].

The base ticket tax was first introduced in 2011 to help balance the German government's budget, collecting around one billion euros annually in surcharges dependent on route. Despite soaring costs, the aviation industry continues to abide by these charges [1][2].

German leaders, Olaf Scholz, Robert Habeck, and Christian Lindner, have recently aligned on a strategy to patch up the federal budget for 2024 and the climate and transformation fund following the Federal Constitutional Court's ruling [1][2].

Sources: [1] [2] Enrichment Data (minimally integrated)

Here's a snapshot of enhancements the enrichment data brings to the article:

1. The German government is planning to raise the ticket tax on passenger flights by an additional 1.2 billion euros annually due to the budget crisis. This increase is attributed to various factors, including the rise in the air traffic tax, higher air traffic control fees due to Corona legacy issues, and the mandatory addition of sustainable fuels.
2. The total tax burden on the aviation industry in Germany is expected to rise to 4.5 billion euros in 2025, with approximately 30 euros in government-imposed costs per ticket. This increase will likely lead to higher ticket prices for passengers and could affect Germany's competitiveness as a business location.
3. The industry association BDL is urging the government to reduce these costs to support the recovery of air traffic and maintain international competitiveness.

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