The EU is close to approving aviation tax as part of the reform of the oil tax to meet its emissions targets.
EU finance ministers who met in Lisbon on Saturday outlined all the support for the upcoming European taxes on all taxes on fossil fuels used by air, officials told the Financial Times.
Brussels has struggled in recent years to increase oil tariffs in areas such as air and sea but the reason has also been strengthened by the bloc’s commitment to reduce EU emissions by 55% over the next decade by zero to 2050.
Airlines, which have been devastated by the epidemic, have voiced their concerns over EU paraffin tariffs.
In July, the European Commission will propose a major overhaul of its electricity tax laws that introduce lower oil tariffs and have not been changed for nearly two decades. Agreements on these changes have been made to the need for a unity agreement from all 27 member states.
Brussels has said it will improve tax laws for areas such as airports and seas that have not been covered by the system. However, EU finance ministers have indicated that they do not support the bill, while countries in Europe have expressed concern, officials said.
The restitution of electricity taxes will be a major political issue in Brussels since each country has a veto on tax laws. Valdis Dombrovskis, the EU’s Deputy President for Economic Affairs, said the policy was “outdated” and that ministers had called for “political haste to change”.
Portugal’s finance minister, João Leão, who is chairing the summit, said his country has contributed to the development of maritime and aviation operations to help achieve the EU’s natural goals.
Some EU countries took the lead in abolishing airline taxes, while the Netherlands promised to impose a global tax without international agreement.
The restoration in Brussels will also promote the decommissioning that many member states provide to areas such as agriculture, coal and diesel industries. The commission is also considering a more sophisticated approach when lower oil taxes are more than 10 years old, said one official.
Electricity taxes are one of the tools that Brussels can use to help fuel the air for high-tech technologies that are detrimental to consumers and companies. Another important step in the carbon prices that the agency wants to change is the European Emissions Trading Scheme (ETS), which Brussels is also considering to increase shipping, aviation and traffic.
During the talks, some finance ministers reported on cases involving ship and aircraft cases involving ETS and energy tax laws, said ambassadors familiar with the negotiations.
The commission also gave the minister a preliminary proposal to establish a private carbon reserve that will pay taxes to the EU based on carbon production. The measure, which will be released in July, has sparked fears in countries such as Russia and Ukraine. Brussels has said the money is important to protect the competitiveness of EU companies and to prevent businesses operating by foreign companies that do not have to comply with their offers.
Dombrovskis said the border tax would be introduced “slowly”, with the focus being on foreign products such as cement, steel, and fertilizers. “We are confident of a consensus on the idea of creating a carbon boundary that is slowing down over time,” he said.