NEWSru IsraelEconomy14:39

Israel Considers New Tax on Departing Flights to Fund Budget

Translated & summarized from NEWSru Israel by baba

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Israel's Tax Authority proposed a new tax on departing flights to help fund the state budget, aiming to generate 1.1 billion shekels annually by offsetting carbon emissions. The tax would increase ticket prices by an estimated 4-5%, with varying amounts based on flight distance and aircraft weight. This proposal, intended to address environmental damage, was considered but not adopted in the previous budget cycle.

The story in 6 lines · by baba

Israel's Tax Authority proposed a new tax on departing flights to fund the state budget.
The tax is expected to generate 1.1 billion shekels annually and increase ticket prices by 4-5%.
The levy's amount will depend on aircraft weight and flight distance, ranging up to 95,777 shekels for large planes on long-haul routes.
The proposal aims to compensate for environmental damage caused by carbon emissions from aviation.
A similar tax proposal was considered but not adopted in the previous budget cycle.
International air travel in Israel is largely exempt from VAT and excise taxes on fuel.

Israel Considers New Tax on Departing Flights to Fund Budget — Editorial illustration generated by baba News, not a photograph of the event.

Israel's Tax Authority has proposed a new tax on flights departing from the country, intended to be included in the upcoming state budget discussions. The proposed levy would vary based on the aircraft's weight and the flight's distance. The authority estimates this tax would increase ticket prices by approximately 12 shekels for domestic flights, 58 shekels for European routes, and 274 shekels for flights to the U.S. and East Asia, representing a 4-5% rise in ticket cost. This measure is projected to generate about 1.1 billion shekels annually for the state treasury, based on 2025 figures. The proposal aims to offset the environmental damage caused by carbon emissions from aviation. The Israeli aviation sector has historically faced minimal taxes related to its environmental impact, with international air travel exempt from VAT and aviation fuel exempt from excise tax. This tax proposal was also considered for the previous budget but was not ultimately adopted. The tax structure would categorize flights into four weight classes and three distance types. For smaller aircraft (under 50 tons), the tax would range from 1,235 shekels for short-haul to 15,188 shekels for long-haul flights. For the largest aircraft (over 300 tons), the tax would range from 7,074 shekels for short-haul to 95,777 shekels for long-haul. Short-haul flights are defined as domestic or those to destinations within 500 kilometers of Ben Gurion Airport, medium-haul up to 4,000 kilometers, and long-haul beyond that. The tax amounts would be indexed to the consumer price index and would only apply to departing flights.