The Court of Justice of the European Union (CJEU) issued a judgment in joined cases concerning Ireland’s air travel tax—an excise tax on air passenger transport, that is applied at different rates depending on the distance between the departure and arrival airports—and whether this tax was compatible with state aid rules.
The CJEU concluded that the air travel tax provisions constitute state aid and that the amount of aid to be recovered is computed as the difference between the €10 tax that is typically applied and the €2 reduced rate tax for flights to airports located less than 300 kilometers from Dublin airport.
The cases are: Aer Lingus and Ryanair
Read a December 2016 report [PDF 159 KB] prepared by KPMG’s EU Tax Centre
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