Narrow Your Choices

Refine By Type

Refine By Countries

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Browse

You are looking at 1 - 1 of 1 items for :

  • United States x
  • Excise taxes x
  • IMF Working Papers x
  • Industry and industrial studies x
  • Public Finance x
  • Public Economics x
  • Air Transportation x
  • Aerospace industries x
  • Expenditures, Public x
  • Public aspects of medicine x
  • Public finance & taxation x
Clear All
Cover IMF Working Papers
Indirect Taxes on International Aviation
Mr. Jon Strand and Mr. Michael Keen
This paper examines the case for internationally coordinated indirect taxes on aviation (as a source of general revenue-not (necessarily) as a source of development finance). The case for such taxes is strong: the tax burden on international aviation is currently limited, yet it contributes significantly to border-crossing environmental damage. A tax on aviation fuel would address the key border-crossing externalities most directly; a ticket tax could raise more revenue; departure taxes face the least legal obstacles. Optimal policy requires deploying both fuel and ticket taxes. A fuel tax of 20 U.S. cents per gallon (10 percent, at today's fuel prices, corresponding to assessed environmental damage), or alternatively ticket taxes of 2.5 percent, would raise about US$10 billion if imposed worldwide, and US$3 billion if applied only in Europe.
Keywords:
WP; ticket tax; indirect tax; aviation fuel