Estimated revenues of VAT and fuel tax on aviation
This report by CE Delft has been commissioned by Transport and Environment into estimated revenues of VAT and fuel tax on aviation.
It estimates that if VAT were to be levied on tickets while other aviation taxes were simultaneously abolished, this would yield revenues of approximately 7 billion Euros, while excise duty on jet fuel would raise revenues by approximately 20 billion Euros.
These figures do not take into account the impact of the cost increases on demand for aviation into account. Since higher costs will reduce demand, the estimates can be considered an upper bound.