Aviation tax: Abolishing it now would generate growth

The abolition of aviation tax would have obvious positive impacts on the German economy according to a study by PricewaterhouseCoopers. In fact, it would lead to growth in GDP of 67 billion euros over the next 13 years. By 2020, 10.5 million additional tourists would visit Germany, spending around 1.6 billion euros at hotels, restaurants and shops. This and other positive effects could result in the creation of up to 26,000 new jobs by 2030. The study confirms the results of the German Aviation Association’s evaluation report of September 2017. In the report, the Association warns that the tax is making German airlines and airports considerably less competitive and draining funds that they urgently need for investments. That’s one of the reasons why Austria cut its aviation tax rate in half recently. Now the aviation industry there is back on track for growth.