Dutch government looks to triple tax on plane tickets from 2023
Increasing passenger tax for flights from the Netherlands
At the beginning of last year, the government introduced a new passenger tax for all travellers flying out from Dutch airports, resulting in the price of flights increasing by 7,45 euros per person. Now, after just one year since the tax was launched, the cabinet is looking to triple the tax rate.
From January 2023, anyone flying out of the Netherlands may have to pay up to 24 euros tax for each plane ticket purchased. While the so-called air passenger tax doesn’t apply to travellers under the age of two or anyone on a transfer flight with a layover in the Netherlands.
The higher tax rate would increase tax revenue from around 200 million euros to 600 million euros a year, and a decision on the matter is expected to be reached in the autumn.
Higher tax part of new Dutch Recovery and Resilience Plan
In the long-term, the government hopes that higher prices will discourage travellers from flying, and force them to look at other, more sustainable modes of transport. “Some travellers can refrain from travelling, others will choose another mode of transport, others will divert to foreign airports and some will continue to fly,” Finance Minister Sigrid Kaag told the House of Representatives (Tweede Kamer), adding that, so far, the tax has had a “relatively limited” impact on demand for flights.
The cabinet’s hope to increase the air passenger tax is just one part of the Dutch Recovery and Resilience Plan, which is designed to help the country become “stronger and more resilient” after the coronavirus pandemic. With measures focusing on various issues, including climate, housing, and healthcare, the plan will be presented to the European Commission later this year. Once approved, the Netherlands will be eligible for funding under the bloc’s COVID-19 recovery fund.