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