05/12/2022

INSULEUR's position on the proposed rise in taxes for aviation and maritime fuel

 

During INSULEUR's General Assembly that took place on the 30th of November 2022, at Expomeloneras in Gran Canaria, Maspalomas, the Assembly adopted a position on the proposed rise in taxes for aviation and maritime fuel.

 

While remaining fully committed to the EU's green deal objectives, INSULEUR considers that the increase in transport costs resulting from the ETD revision will have a higher and disproportionate impact on citizens and businesses located in EU islands, with an adverse impact on economic and social cohesion in the EU. INSULEUR therefore calls on the deletion of Articles 14 and 15 from the revision of the Energy Tax Directive and to retain the current exemption of taxation on the use of kerosene fuel for the aviation sector, and heavy fuel oil for the maritime sectors.

 

Moreover, INSULEUR calls for further incentives for air and maritime carriers to shift towards more sustainable technologies and fuels. Imposing a tax will imply a further increase in prices but will not necessarily assist in the shift towards the set decarbonization goals. Nonetheless having a set date by which this shift must take place, and the constant monitoring of the respective sectors to ensure that the shift can take place in line with the technological developments and the adequate supply of sustainable fuels, should be the indicated way forward. Given the importance of these sectors it must also be ensured that important EU funds related to research and innovation (such as in the case of Horizon 2020 funds) are dedicated to these sectors.

 

Position Paper (179 KB)