4 ms·
> that airlines do not pay any tax on fuel and no VAT on fuel. Not sure why they should not. What a weird rule. In the US they do. Although some of that might
by HWR_14 9mo ago
> that airlines do not pay any tax on fuel and no VAT on fuel. Not sure why they should not.
What a weird rule. In the US they do.
Although some of that might go back to attempts made early in aviation to handle the import taxes of airplanes landing with a half full gas tank.
- flakeoil 9mo agoIf you look into the details, in the US, aviation fuel is taxed very low and for international flights not taxed at all. "Kerosene-based jet fuel used for commercial aviation (transporting persons or property for hire) is taxed at a reduced rate of 4.4 cents per gallon." [0] That is $0.044 per galon. For cars the tax is between $0.31-$0.74 per gallon depending on state + federal tax of $0.184 so in total somewhere between $0.494-$0.924. That means aviation fuel is taxed 1/10-1/20 of what car fuel is taxed. So in essence aviation fuel is barely taxed. For international flights it is tax free: "The tax code provides statutory exemptions that result in zero or near-zero tax liability for specific fuel uses. Exemptions generally apply to fuel used in foreign international flights, military aircraft, governmental entities, farming, or by nonprofit educational organizations." [0] [0] https://legalclarity.org/federal-jet-fuel-tax-rates-exemptions-and-reporting/ https://legalclarity.org/federal-jet-fuel-tax-rates-exemptio...