Israel Proposes New Tax on Departing Flights to Raise NIS 1.1 Billion

By חדשות כיפה

Translated & summarized from Kipa by baba

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Israel's Tax Authority has proposed a new tax on all departing flights, aiming to generate NIS 1.1 billion. The tax, based on aircraft weight and flight distance, will range from NIS 1,000 to NIS 100,000 per flight. This measure is intended to address the aviation industry's environmental impact and is expected to increase ticket prices by 4-5%, or up to NIS 274 on long-haul flights.

The story in 5 lines · by baba

Israel's Tax Authority proposed a new tax on departing flights, expecting to raise NIS 1.1 billion.
The tax will be calculated based on aircraft weight and flight distance.
Costs per flight will range from NIS 1,000 for light aircraft to NIS 100,000 for heavy aircraft.
Passenger costs are estimated to increase by 4-5%, up to NIS 274 on flights to the US and East Asia.
The proposal cites environmental impacts and lower taxation of aviation compared to other sectors.

Israel Proposes New Tax on Departing Flights to Raise NIS 1.1 Billion — Editorial illustration generated by baba News, not a photograph of the event.

Israel's Tax Authority has proposed a new tax on all aircraft departing from the country, a move expected to generate approximately 1.1 billion shekels for the state treasury. This initiative follows similar taxes already implemented in countries like the UK, France, and Germany on outbound flights. The proposed tax will be calculated based on the aircraft's weight and flight distance. The amount airlines would have to pay per flight is estimated to range from about 1,000 shekels for a short flight on a light aircraft to approximately 100,000 shekels for a long-haul flight on a heavy aircraft.

The Tax Authority justified the proposal by citing the negative environmental impacts of the aviation industry, including pollution, contribution to global warming, local air pollution, and noise disturbances near airports. The authority also noted that the aviation sector in Israel has been largely exempt from taxes compared to other industries, with international flights currently subject to zero VAT and jet fuel exempt from excise taxes that apply to other fuels.

According to the Tax Authority's estimates, this new tax will translate to an increased cost for passengers, adding about 12 shekels for domestic flights, 58 shekels for flights to Europe, and 274 shekels for flights to the US and East Asia. This increase represents approximately 4% to 5% of the ticket price.