IATA has expressed disappointment at the recommendation of the GSLTF to target air transportation for raising domestic revenue in developing countries. The GSLTF’s proposal risks burdening airlines, which have thin profit margins while committing to USD4.7tn tfor sustainability by 2050.
The GSLTF disregards the established CORSIA mechanism that manages aviation’s carbon emissions, which the aviation industry supports. IATA’s assessment warns that increased taxation will adversely affect the affordability of air travel and weaken economic growth.
Public sentiment shows that a majority believes aviation taxes are ineffective, with high distrust in government spending on related tax revenues.
Willie Walsh, IATA’s Director General shared: “The airline industry is an economic catalyst, not a cash cow, history shows us that these taxes simply go to the general exchequer.”
