Sweden will abolish its aviation tax from July 2025 in a bid to boost air travel.
The tax, which has been in effect in the Scandinavian country since 2018, represents a levy of between SEK76 and 504 (approximately US$7.4 – 49) depending on the destination, on each airline ticket for flights arriving or departing Swedish airports (transit passengers are exempt).
This measure still needs to be voted upon in the Swedish parliament, where it is expected to pass given that the current government has a majority.
The current Swedish government has defended the measure stating that it will boost economic activity and the competitiveness of the Swedish air transport sector while adding that it remains committed to the sector’s decarbonization.
The move represents a departure from the policies of other European governments, which have tended to introduce or increase taxes on air traffic, often on environmental grounds.
The decision has been even more surprising because Sweden, which is the home country of famous environmental activist Greta Thunberg, was one of the first countries in Europe in which air travel became a prime target of environmental activism. The Scandinavian country also gave rise to the so-called “flygskam” (“flight shame”) movement which aims to reduce air traffic by shaming people for the environmental impact of the flights.
While it has raised eyebrows among environmental organizations, the decision to scrap the aviation tax has been welcomed by the Swedish air travel sector as well as by the broader international airline industry.
Airlines such as Ryanair or organizations like the International Air Transport Association (IATA) have published press releases endorsing the measure.