In a move that is surprisingly off-brand for a country with an eco-activist reputation, Sweden is set to abolish its aviation tax from summer 2025.
The northern European nation is associated with the youth environmentalist movement headed by Greta Thunberg and was one of the first European countries where flygskam or “flight shame” became a common talking point. It has had an aviation tax in place since as far back as 2018, levying between SEK76 and 504 (around 6.6 – 44 euros) per ticket for flights that arrive and depart from Swedish airports, except where passengers are only transiting.
Shockwaves
The news is likely to send shockwaves around other European nations, which have been moving in the opposite direction with various attempts to bring in increased taxes on air traffic, frequently using environmental arguments to back up their policies.
In 2023, Germany looked to fill an 11.1 billion euro hole in its federal budget with a kerosene tax that was eventually rolled back to instead pass the cost onto flyers. Denmark is another example where the idea of an aviation tax was justified by claims that it would fund state support for sustainable power solutions, such as bio fuels and hydrogen technology.
What’s more, the green research and campaign group Travel and Environment (T&E) has noted that European governments lose out by subsidising aviation through tax exemptions, to the tune of 34.2 billion euros in 2022. “Taxation should not be perceived as a punishment but as a way to fairly charge those who benefit most from aviation’s under-regulation. Those better off in society have been paying far too little for their flying habits,” the group’s director said in summer 2023.
Boosting the economy and competitiveness at what cost?
Swedish authorities however seem intent on now flying against those prevailing winds. Though it claims to remain committed to decarbonizing aviation, the government is proposing zeroing its existing aviation tax from July 2025. The aim is to increase the competitiveness of Swedish aviation and give the country’s economy a boost.
The country’s parliament is yet to vote on the measure to give it final approval, but the idea has been generally welcomed by the Swedish travel and tourism industry, as well as by its aviation sector and the wider aviation community. That applause comes from carriers such as Ryanair and bodies such as the International Air Transport Association (IATA), which have both released press statements in favour of scrapping the tax.
