IATA Warns of Job Losses After Italy Surprises with New Aviation Tax
The International Air Transport Association (IATA) has condemned a sudden increase in the Italian Council Tax levied on air passengers, warning that it “will damage Italian economic competitiveness”, and result in 2,300 lost jobs a year.
Italian authorities, IATA states, announced a 33-38% increase in its Council Tax, effective immediately in January, “without any advance warning or consultation.”
The airline association says the tax will have a cost impact of an extra EUR 2.50 for every passenger on existing taxes. Passengers will, thus, pay EUR 10 in tax each time they fly from airports near Rome, and EUR 9.00 for flights from other Italian airports. “None of the revenue raised from the tax is re-invested in aviation, instead it is diverted for general purposes,” IATA states.
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