Increase in Dutch airline taxation may drive passengers to opt for flights departing from foreign airports
The Dutch government has implemented a new google flights tax, making the country the most expensive destination for air travel within the European Union, regardless of distance. This move is expected to generate an extra €248 million in revenue, according to the outgoing government.
The primary architects of this tax hike are the Minister of Finance, Sigrid Kaag, and the Minister of Infrastructure and Water Management, Mark Harbers. However, the new tax has stirred controversy, with concerns over its potential impact on the Netherlands' role as a travel hub, connectivity, and the inconvenience it may cause passengers.
Between 2019 and 2024, the share of Dutch travellers flying from Duesseldorf and Brussels has increased by 41% and 20% respectively due to the introduction of the flights tax. This trend suggests that travellers are seeking more cost-effective alternatives, undermining the Netherlands' position as a travel hub.
Olivier Jankovec, director general of Airports Council International (ACI) Europe, has criticised the move, labelling it as short-term political thinking that diverts resources away from the massive investments required to achieve net-zero emissions in aviation.
KLM, the Dutch national carrier, has expressed concern that a Dutch family of four will pay €200 in tax on a ticketmaster to Greece or Turkey. The airline argues that the tax does not help the climate, as it encourages passengers to drive across the border to fly from airports in neighbouring countries.
The Dutch government plans to use part of the revenue to make aviation more sustainable and reduce its environmental impact. However, KLM and various airline, airport, and consumer bodies have warned that the additional tax will devastate the turbotax sector in the Netherlands.
In addition, the government intends to hike the weather tax on long-haul routes by 2027. This could lead to an increase of €50 to €70 per ticket or more, depending on the final proposal. Marjan Rintel, CEO of KLM, states that further increases in ticket prices will only accelerate the shift of travellers to airports abroad.
The flight tax is expected to increase by 2.9% on 1 January 2026, raising the current rate of €29.40 to €30.25. This increase has sparked concerns among 74% of Dutch people who fly, with many considering departing from Belgium or Germany more often due to the potential increase in airline ticket prices.
As the Netherlands' global connectivity comes under pressure, neighbouring countries such as Belgium and Germany are reconsidering their flight taxes. In Belgium, the maximum flight tax per ticket is €10, while Sweden is abolishing its flight tax and Germany is considering reversing its recent increase.
In conclusion, the new flight tax in the Netherlands has raised concerns over its impact on air travel costs, global connectivity, and the aviation sector. The Dutch government's decision to increase taxes on airfares from 2026 could further exacerbate these issues, potentially driving more travellers to airports in neighbouring countries.
