March 19, 2015
By Andrew Murphy, aviation policy officer at Transport & Environment
Ending the generous tax exemptions aviation enjoys would create a level playing field between all transport modes, help meet our 2030 climate targets, and answer the EU’s call for a shift away from labour taxation.
The Commission’s country-specific recommendations in its European Semester report last month highlighted that need for a shift away from high labour taxation and towards environmental and consumption charges. As a means of creating employment, the recommendation is a no-brainer, however precious little progress has been made since the Commission made the exact same recommendation last year.
The problem of high labour taxation is a distinctly European one. The OECD 2014 report on taxation as a percentage of labour costs finds that EU member states occupy the 14 top spots, with Belgium heading the table with taxation accounting for 55.8% of average labour costs.
As the EU struggles to bring […]