Abolition of boarding tax: +9 million passengers and +4.2% of GDP by 2030 | EUROtoday

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Nine million extra passengers by 2030, the creation of 65 thousand jobs with a progress in Gross Domestic Product of 4.2% which might result in further income for the state coffers of over one billion euros. The abolition of the hated municipal boarding surcharge utilized to airline tickets for flights departing from Italy is value it, in keeping with the calculations of a research by transport knowledgeable Andrea Guiricin, economist at CESISP-UNIMIB.

Positive impression on air transport

«Eliminating this tax, which offers a income that’s largely allotted to the INPS and due to this fact assigned to the financing of funds not linked to air transport (and solely a small half to the Municipalities), would have a constructive impression on air transport, due to this fact on connectivity and on the economic system of your complete nation” he writes in the report presented at the conference organized by Aicalf, the association of low cost airlines in Italy and by Ibar (Italian Board Airline Representatives).

The battle for the abolition of the boarding tax

The battle for the abolition of the boarding tax has been a long-standing one, embraced in particular by low-cost airlines including Ryanair, easyJet and Wizz Air, which over the years have seen an increase in this levy which weighs on the price of the airline ticket. Introduced on January 1st 2004, initially the surcharge was equal to one euro per passenger, but over the years it has been increased up to, in some cases, up to 9 euros per passenger: in general, for all airports it is was set at 6.5 euros with the exception of Venice, where the Municipality decided, thanks to rules in favor of Municipalities in economic difficulty, to increase the taxation to even 9 euros per passenger, while Naples increased it to 8 ,5 €.

The distribution of funds

Despite the definition of municipal surtax, in reality the revenue «for the Municipalities is negligible (..) but it is used to cover other expenses of the State” we learn within the research the place the distribution of funds is calculated: out of 6.5 euros, 5 are allotted to the INPS and the “flight transport fund”, or the solidarity fund for the air transport sector and the airport system : the latter receives an quantity equal to 1.5 euros per passenger. The remaining half or 3.5 euros. it’s meant for the “Management of welfare interventions and support for social security management” (GIAS), i.e. for some particular pension administration which don’t have anything to do with air transport, in keeping with Guiricin's calculations.

The 1.5 euros that stay are shared by the fireplace service on the airports, by ENAV for the prices incurred to ensure the protection of its European programs.a minimal fraction of the full quantities is allotted to the Municipalities. But there are exceptions like nei circumstances of Rome, Venice and Naples whose administrations have agreed on debt reimbursement plans with the nationwide authorities.