Front Matter

Front Matter Page

Fiscal Affairs Department

Authorized for distribution by Fiscal Affairs Department

Contents

  • I. Introduction

  • II. Types of Aviation Tax

  • III. Aviation Taxes in Practice

    • A. Taxes on Aviation Fuel

    • B. Ticket Taxes

    • C. Departure and Other Trip Charges

  • IV. Environmental and Other Externalities

    • A. Air Pollution

    • B. Global Carbon Emissions

    • C. Other Emissions Affecting Global Warming

    • D. Noise

    • E. Pollution and Congestion at Airports

  • V. Taxing International Aviation: Basic Principles

    • A. No Cross-Border Damage

    • B. Implications of Cross-Border Damage

    • C. Treatment of Business and Economy Travel

  • VI. The Implications of Non-Environmental Distortions in International Aviation

    • A. International Tax Competition

    • B. Imperfect Competition

    • C. Network Externalities

    • D. Product Quality

    • E. Distortions in Competing Modes of Transport

    • F. Input Price Distortions

  • VII. Rates, Revenue, and Incidence

    • A. Rates

    • B. Revenue

    • C. Incidence

  • VIII. Administration and Compliance

  • IX. Conclusions

  • Tables

  • 1. Tax Rates on Domestic Aviation Fuel

  • 2. Domestic Ad Valorem Ticket Taxes, Selected High-Income

  • 3. Ad Valorem Aviation Taxes, Selected Emerging Market and Developing Economies, April 2005

  • 4. Airport and Departure/Arrival Taxes and Charges, High-Income Economies

  • 5. Airport and Departure/Arrival Taxes and Charges, Emerging and Developing Economies

  • 6. Illustrative Seat Prices by Type of Ticket

  • 7. Estimated Average Aviation Fuel Tax Necessary to Cover Main Externality Costs (Noise and Air Pollution)

  • 8. Overall Shares of Aviation Traffic by Travel Class, for Numbers of Passengers, Distance Traveled, and Airline Revenue

  • 9. Shares of Total Numbers of Air Passengers by Class, for Traffic Originating in Different Major Regions

  • Boxes

  • 1. The European Debate on Aviation Taxes

  • 2. Other Possible Types of Aviation Tax

  • 3. Optimal Aviation Tax Rates for Alternative Parameter Values

  • References

Indirect Taxes on International Aviation
Author: Mr. Jon Strand and Mr. Michael Keen