Sweden to Scrap Aviation Tax in 2025: IATA Applauds Decision

3 months ago Editor

Sweden will abolish its aviation tax in July 2025, a move welcomed by IATA as a boost for economic competitiveness and air connectivity, while emphasizing investments in sustainable aviation.

The International Air Transport Association (IATA) has applauded the Swedish government’s decision to abolish the aviation tax starting from July 1, 2025. The tax, which ranges from SEK 76 to SEK 504 per passenger depending on the destination, has been criticized for hindering Sweden’s economic competitiveness without delivering meaningful environmental benefits.

Rafael Schvartzman, IATA’s Regional Vice President for Europe, expressed approval of the move, highlighting that the tax’s removal is a positive step towards enhancing Sweden’s air connectivity and economic recovery. He emphasized that better air connectivity can boost the economy’s productive capacity and lead to stronger long-term tax revenues. The Swedish aviation sector’s recovery post-pandemic has lagged behind neighboring countries, partly due to the tax, which also affected the rebound of air routes to pre-pandemic levels.

Furthermore, Schvartzman noted that aviation taxes are not effective in addressing sustainability challenges. He called for investments in sustainable aviation fuels (SAF) and other green technologies rather than relying on taxation as a demand-reduction tool. Sweden, with its robust aviation industry and resources, has the potential to become a leader in sustainable aviation. The government’s decision was also supported by Infrastructure and Housing Minister Andreas Carlson, who stated that it would foster investments in Swedish aviation and enhance the country’s global competitiveness.