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Will Germany's aviation tax cut lower ticket prices?

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German lawmakers  in the Bundestag on Thursday voted in favor of a proposal to cut aviation tax, raising hopes the move could make flying slightly cheaper in the country. If it’s approved by the upper house of parliament, the Bundesrat, the tax will be lowered from July 1 to the level it was at before the last increase in May 2024. Depending on the length of the flight, the tax will drop between €2.50 and €11.40 ($2.90 to $13.25) per flight. The measure is expected to reduce federal tax revenues by approximately €350 million per year. “We are, of course, grateful for this signal to reverse the latest tax increase, but that does not yet mark a turnaround,” Kay Lindemann, the Lufthansa Group's representative for policy and regulation, told DW. The aviation tax accounts for only a portion of the total tax burden, which has doubled in Germany since 2019, he pointed out.…

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