The German federal states have issued warnings that the planned reduction of the air traffic tax, set to take effect on July 1st, could severely hinder crucial transport investments. Consequently, the states are rejecting the proposal to fund the resulting revenue shortfall of 1.5 billion euros through 2030 entirely using the budget allocated to the Federal Minister of Transport, Patrick Schnieder (CDU). This position was reported by the “Rheinische Post” following recommendations from committee meetings held during a Federal Council session on Friday.
According to the states’ recommendations, the Federal Council noted that funding current needs requires “not fewer, but overall more resources” to guarantee sufficient investment in technologies and infrastructure fit for the future. Therefore, the shortfall must be generated through alternative means.
While the coalition government’s draft law includes provisions that should allow Schnieder to save approximately 350 million euros annually starting in 2027 through the tax cut, the states welcome the tax reduction itself. However, they maintain that additional, concrete steps are necessary to ensure German aviation companies remain competitive and that the international connectivity for both businesses and the general public is fully secured.