Austria Rejects Calls to Scrap Aviation Tax as Budget Pressures Mount

Austria

Austria’s Finance Minister Markus Marterbauer has firmly rejected calls to abolish the country’s aviation tax, arguing that the government cannot afford to lose the €190 million in annual revenue it generates.

Speaking to journalists on the sidelines of the EU finance ministers’ meeting in Brussels, Marterbauer said the proposed abolition was financially unrealistic, particularly as Austria continues to struggle with budgetary constraints. “I certainly cannot do without €190 million,” he said, making clear that there was little room for compromise on the issue, according to News ORF.

The debate follows a unanimous appeal by Austria’s nine provincial governors, who called for the complete removal of the aviation tax at their conference in Mellau, Vorarlberg, last Friday. They argue that scrapping the levy could strengthen the country’s competitiveness and support its aviation and tourism industries.

However, Marterbauer suggested that financial support for businesses could be considered through other means. The current budget allocates €30 million for measures aimed at protecting Austria’s economic competitiveness. Any additional spending, he stressed, would require a clear and fully funded source of compensation.

Rather than abolishing the tax altogether, the finance minister expressed openness to increasing levies on private jet flights and introducing higher charges for business-class and first-class passengers. He described such a move as reasonable, arguing that an additional €30 to €50 per flight would hardly affect frequent business travellers or corporate executives.

At the same time, he called for greater consideration of ordinary families travelling during the summer holiday season, who should not face an excessive financial burden.

Beyond the budgetary implications, Marterbauer also pointed to the climate impact of air travel, reinforcing his opposition to scrapping the tax entirely. For now, Austria’s aviation levy appears set to remain, despite growing political pressure for its removal.