
The E.U. "Airline Tax"
By Shi-Ling Hsu / On January 9th, 2012
The charge that airlines will have to pay for flying in and out of the EU is not a "tax" at all, but the cost of airlines having to hold tradable emissions permits under the EU Emissions Trading System. Starting January 1, 2012, airlines will have to hold permits for the carbon dioxide their airplanes emit during the entire length of a flight that originates or terminates in the EU zone [see EU reg].