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Swedish government commission proposes airline climate tax

by Reuters
Wednesday, 30 November 2016 16:18 GMT

A ground staffer carries warning cones between two SAS Boeing 737 aircrafts parked at Arlanda airport's Terminal Five, north of Stockholm in this 2012 archive photo. REUTERS/Johan Nilsson/Scanpix

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Government expected to incorporate a form of the proposal in its next autumn budget in October 2017

STOCKHOLM, Nov 30 (Reuters) - A government-appointed commission recommended on Wednesday that airlines operating in Sweden should pay a tax of between 80 and 430 Swedish crowns ($9-47) per passenger and flight to compensate for climate pollution.

Once the levy is instituted, the cost of a domestic flight would rise by 80 crowns and an international flight by 280 to 430 and crowns, depending on the distance of the flight.

Under current rules in the Nordic state, airlines pay value-added tax of 6 percent on domestic flights while international flights are exempt from VAT.

The centre-left government's plans for an airline tax has been criticised by opposition parties who say it would do little to reduce carbon dioxide and would harm the airline industry.

The government is expected to incorporate a form of the proposal, possibly amended, within their next autumn budget in October 2017.

The commission proposed that the tax come into force on Jan. 1, 2018 and said it would be expected to raise around 1.75 billion Swedish crowns per year.

($1 = 9.2242 Swedish crowns)

(Reporting by Johan Ahlander; editing by Mark Heinrich)

Our Standards: The Thomson Reuters Trust Principles.

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