Germany's Merz plans further cuts to air traffic tax

By Reuters News

- German Chancellor Friedrich Merz wants to further reduce the air traffic tax in Germany, he said at a business event on Tuesday.

  • Merz pointed to his coalition's decision to reverse the increase in the tax with effect from July 1.

  • “The second part must follow,” said Merz in response to a question as to whether the air passenger tax could be abolished altogether.

  • “We are not doing ourselves any favours with this levy, because air traffic in Germany is being diverted to locations outside the Federal Republic of Germany,” Merz added.

  • “I would like us to rectify this,” Merz added, without giving details.

  • This would have implications for the federal budget.

  • The aviation industry has long lamented high costs in Germany, including taxes and fees.

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