Germany's Merz plans further cuts to air traffic tax

Germany’s Chancellor Merz Targets Further Reductions in Air Traffic Tax

Chancellor Merz’s Stance on Air Traffic Tax Reduction

Background and Recent Developments

BERLIN, Nov 3 (Reuters) - German Chancellor Friedrich Merz wants to further reduce the air traffic tax in Germany, he said at a business event on Tuesday.

Coalition Decision and Future Plans

• Merz pointed to his coalition's decision to reverse the increase in the tax with effect from July 1.

Potential Abolition of the Tax

• “The second part must follow,” said Merz in response to a question as to whether the air passenger tax could be abolished altogether.

Economic and Industry Implications

• “We are not doing ourselves any favours with this levy, because air traffic in Germany is being diverted to locations outside the Federal Republic of Germany,” Merz added.

• “I would like us to rectify this,” Merz added, without giving details.

• This would have implications for the federal budget.

Industry Reaction

• The aviation industry has long lamented high costs in Germany, including taxes and fees.

Reporting Credits

(Reporting by Andreas Rinke, writing by Linda Pasquini, editing by Thomas Seythal)