As European governments grapple with budgetary deficits and pressure to achieve net-zero carbon targets, taxation is being weaponized to make business aviation pay, according to industry organizations. Over the past 12 months, industry leaders are increasingly concerned about the way the sector has been singled out for an “all-stick-no-carrot” approach to market manipulation at a time when Europe’s anemic economies have arguably never been in greater need of the wealth generation that business aircraft can support.
France’s so-called “solidarity tax,” which has been imposed on private charter services since March 1, is the most glaring case of the aggressive fiscal pressure that some see as posing an existential threat to business aviation in that country. Pending increases to the UK’s air passenger duties are another example, and while both sets of taxes also apply to airline passengers, there is an intentionally disproportionate impact on business aviation travelers.