DENMARK ANNOUNCES NEW AIRLINE TICKET TAX

Laura Maudlin - Nov 13, 2023
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The Danish government plans to impose a ticket tax of around 100 kroner (equivalent to approximately 13.4 euros) per flight. The tax is set to take effect from 2025 and will initially cost an average of 70 crowns (around 9.4 euros). Tax Minister Jeppe Bruus announced this development.

The tax rate will gradually increase, reaching its maximum level in 2030. It will be implemented so that long-haul flights attract higher ticket taxes than short-haul ones. For flights within Europe, passengers will be required to pay approximately 8 euros; for medium-long flights to destinations such as New York, the tax will be around 32 euros; and for long-haul flights to destinations such as Bangkok, the ticket tax will be around 52.3 euros.

Climate Minister Lars Aagaard stated that neighboring Germany and Sweden have similar fees. The Danish government anticipates revenue of around 160 million euros from this tax by 2030.

The funds will aid the aviation industry in shifting towards eco-friendly propulsion systems and support smaller domestic airports that are expected to be impacted by the passenger tax. Moreover, the government plans to increase social benefits to nearly 300,000 pensioners.

Transport Minister Thomas Danielsen has announced the launch of a "green domestic flight route" starting in 2025 which will receive financial support of approximately 107 million euros. The initiative will allow airports and airlines to test and adopt eco-friendly technologies. By 2030, all domestic flights are expected to operate using green technology.

The German government introduced a ticket tax in 2011 to restructure the budget, bringing in approximately one billion euros per year. The airlines must pay surcharges, which vary depending on the flight route. Due to intense competition, airlines have difficulty recovering these charges through increased ticket prices.

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