By Federico Ricci Buffetti

Danish Presidency advances compromise to tax business aviation fuel

The compromise reached by the Danish Presidency on the Energy Taxation Directive (ETD) in September includes a proposal to tax Jet-A1 used by aircraft with fewer than 19 seats, covering both commercial and non-commercial flights. EBAA, in close cooperation with GAMA, is actively engaging with Member States to warn them about the negative consequences such a tax would have on business aviation, and by extension, on Europe’s economy and connectivity.

Published on

30/09/2025

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The ETD was originally proposed in 2021 as part of the European Commission’s Fit for 55 package. However, as a taxation file, it requires unanimous approval by Member States in the Council. Since its introduction, reaching consensus has proved extremely difficult, and successive Council Presidencies have failed to secure a final compromise.

Now, under the Danish Presidency, the Council appears close to reaching an agreement. A compromise text has been tabled and is expected to be put to a vote at the upcoming ECOFIN Council on 13 November.

This text would impose an immediate tax of approximately €0.40 per litre on Jet-A for both private and commercial business aviation — effectively doubling fuel prices overnight. To make matters even more paradoxical, Sustainable Aviation Fuel (SAF) used by business aviation would also be taxed, at a rate of €0.18 per litre, running counter to the EU objective of making SAF more affordable. Meanwhile, the rest of the aviation sector would benefit from a 10-year exemption, with a review scheduled only afterwards. This marks a clear and unjustified discrimination against business aviation.

EBAA has made this issue an absolute priority. Together with GAMA, we are raising concerns directly with Member States, stressing the disproportionate and unfair impact this measure would have on our sector and its damaging effects on Europe’s competitiveness, connectivity, and economy.

To secure enough opposition to prevent unanimity, and thereby block the adoption of this harmful proposal, we have launched an outreach campaign, sending letters to responsible ministries and organising meetings with diplomats at Member States’ Permanent Representations in Brussels.

Need more information ?

Please contact Federico Ricci Buffetti at friccibuffetti@ebaa.org