Germany Plans Air Travel Tax to Help Plug Country's Deficit

Germany plans to impose a tax on air travel as part of a four-year plan to reduce the budget deficit, Chancellor Angela Merkel told reporters in Berlin today.

The levy will yield 1 billion euros ($1.2 billion) a year in revenue for the federal government, the government said in an e-mailed statement. It will be paid by passengers departing from German airports, with the level depending on factors such as the flight’s noise level and fuel consumption, according to the statement.

Germany’s national levy will be replaced by a Europe-wide measure once aviation is subject to European Union carbon- emissions trading, the statement said.