Thursday, February 23, 2012

Africa aviation association condemns EU carbon taxes

The African airlines association has condemned EU carbon tax
on airlines joining ranks with countries like Russia, China and India.
According to the association secretary general Elijah Chingosho the
levies were illegal as it goes against the 1944 Chicago convection
which empowers the international civil aviation organization (ICAO) to
regulate the industry. He also fears that EU’s move could spark trade
wars as various blocs impose their charges.
The African aviation association protest is perhaps the single unitary
dissent from Africa as a continent after individual countries South
Africa and Tanzania raised fingers over the move by the European
Union. The Emissions Trading Scheme (ETS) that creates permits for
carbon emissions forces Airlines that exceed their allowances to buy
extra permits, as an incentive to airlines to pollute less. However
the levies that came into effect on January 1st have been condemned by
critics who say the EU has no right to impose taxes on flights to or
from destination outside Europe even after the European court of
Justice ruled that the EU tax on carbon dioxide pollution from
aircraft was legal. many fear that the move could lead to
increased taxes on aircraft as other blocs levy taxes on aircraft to
counter the EU’s move that is expected to increase cost for the sector
by between 1.5 and 2 billion Euros annually. For Africa the
move could be a big blow to the young industry as the aviation sector
internally tries to negotiate with governments to reduce taxes
especially on fuel. Statistics show that only less than 10% of the
continent’s population have used an airplane although the continent.
has the potential to grow at over 7.5% annually over the next 10 years
They were speaking ahead of the first African aviation
suppliers conference to be held in Nairobi next month bringing
together players in the aviation sector.

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