New Tax Proposal Could Increase Israeli Airfares by 5%
Translated & summarized from Panet by baba
Israel's Tax Authority has proposed a new tax on departing flights, aiming to raise 1.1 billion shekels annually. Airlines will pay the tax based on aircraft weight and distance, but are expected to pass the cost to passengers, potentially increasing ticket prices by 4% to 5%. The estimated increase per passenger ranges from 12 shekels for domestic flights to 274 shekels for long-haul international travel.
The story in 5 lines · by baba
- Israel's Tax Authority proposed a new tax on departing flights, expected to raise 1.1 billion shekels annually.
- Airlines will pay the tax, but are predicted to raise ticket prices by 4% to 5%.
- The tax is calculated based on aircraft weight and flight distance.
- Domestic flight passengers might see a 12 shekel increase, while long-haul passengers could face 274 shekels.
- The proposal aims to increase state revenue through aviation taxes.
Israel's Tax Authority has proposed a new tax on departing flights, which is expected to generate approximately 1.1 billion shekels annually for the state treasury. The proposal, detailed in a position paper by the Planning and Economics Division, would levy fees on airlines based on aircraft weight and flight distance. While airlines would be directly responsible for paying the tax, it is anticipated that they will pass the cost onto passengers through increased ticket prices, estimated to range from 4% to 5%.
The proposed tax rates vary significantly. For domestic flights using aircraft weighing up to 50 tons, the tax would be around 1,300 shekels. For long-haul flights utilizing wide-body aircraft exceeding 300 tons, the tax could reach up to 100,000 shekels.
Passengers are expected to bear the brunt of this new levy. The Tax Authority estimates that the average increase per passenger could be about 12 shekels for domestic trips to Eilat, 58 shekels for medium-haul flights, particularly to European destinations, and potentially as high as 274 shekels for long-haul journeys to the United States and the Far East.
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