3 September 2024 (Geneva) - The International Air Transport Association welcomed the announcement from the Swedish government that it will abolish the country's aviation tax as of 1st of July 2025. The tax, which charges passengers between SEK76-504 (USD7.4-49, EUR6.7-44) depending on destination, is a drag on Swedish economic competitiveness while making no positive environmental impact.
"We congratulate the Swedish government for abolishing the aviation tax. It is excellent news, which recognizes that taxation of air passengers is counterproductive economically and ineffective environmentally. Better air connectivity boosts the productive capacity of the economy, leading to stronger tax revenues in the long term. Sweden's post-pandemic recovery has notably lagged its neighbors, a problem made worse with the tax. And the number of routes had still not rebounded to 2019 levels by the end of 2023. The removal of this tax shows the Swedish government is serious about restoring access to air travel for all its citizens across the whole country, and will give a strong positive economic signal for investors," said Rafael Schvartzman, IATA's Regional Vice President for Europe.
The removal of the tax also confirms that aviation taxation is not a solution for air travel's sustainability challenge. Revenues from the tax were not being used for investment in vital environmental solutions such as sustainable aviation fuel. And using taxation as a tool to reduce demand is an inefficient method.
"Aviation must get to net-zero CO2 by 2050. That is non-negotiable. But that will not be achieved by pricing people off planes. The solution is to invest in sustainable aviation fuels and other technologies. Sweden is in a prime position to make itself a leader in these fields, with its proud domestic aviation industry and its abundant resources to create SAF. We look forward to working with the Swedish government and energy industry to help focus delivery of this," said Schvartzman.
The Swedish government was unequivocal in giving its reasons for the abolition. Andreas Carlson, Minister of Infrastructure and Housing said the decision "will enable investments in Swedish aviation and make Sweden more competitive…(and ensure)…good accessibility throughout our long country."
