The Dutch government is taking action to ensure that more passengers flying on private jets will be subject to air travel tax. This will be achieved by lowering the weight threshold, resulting in 82% of flights on this type of aircraft being subject to air travel tax, up from the current 60%. The measure will come into effect on January 1, 2025.
Adjusted Air Travel Tax for Private Jet Passengers The air travel tax was introduced by the government in 2021 to better price the pollution and disruption caused by flying. In response to a request from the House of Representatives, the government has examined three possible additions to the increased air travel tax implemented in January of this year, including applying a lower weight threshold. It has been determined that this adjustment is feasible and will result in more passengers of private jets paying air travel tax. It is expected that the number of private jet flights subject to passenger-paid air travel tax will increase from 9,960 (60%) to 13,612 flights per year (82%).
This new threshold was chosen to align with the weight threshold used in the European Emissions Trading System (EU ETS) to ensure the measure is implementable. The adjustment will have minimal impact on airports, as the change to the threshold can easily be accommodated in airport systems. The amendment to adjust the weight threshold will be included in the Tax Plan 2025.
No adjustment for transfer passengers and AirRail passengers Additionally, consideration was given to the possibility of taxing transfer passengers and exempting AirRail passengers from air travel tax. Taxing transfer passengers would have the benefits of higher tax revenue and lower CO2 emissions. However, the disadvantages include a potential decrease in intercontinental connections to Asia and North America from the Netherlands, as travelers may choose to fly via other European airports. This could impact Schiphol’s hub function and have economic consequences. Therefore, the government considers it unwise to unilaterally introduce an air travel tax for transfer passengers as the only member of the European Union. The government intends to discuss air travel tax and tariff levels in a European context in the near future. Furthermore, it has been determined that under current circumstances, it is not desirable to make an exception for AirRail passengers due to poor feasibility and enforceability.